The BDI@1,353: another mild fall amidst global uncertainty… UK PM Theresa May wins Confidence Vote!!!

Breaking News, Chartering, Dry Bulkcarriers, European Union, Fixtures, Markets, Politics and Government, Reports, Shipping Indices, Statistics, Tankers, Trade and Commerce — By on December 12, 2018 at 9:13 PM

John Faraclas. Picture credits George Christakis

The BDI (Baltic Dry Index) 11 points losses were considerably marginal given that yesterday the losses were almost double – 21 points down. Geopolitical uncertainties with the BREXIT taking more twists and turns. John Faraclas’ brief recap:

The Capes’ BCI lost 30 points – half of what were lost yesterday (minus 61 !) and now reads 2,153 points. Obviously its only the Capes that keep the interest in the Dry Markets…

The Panamaxes’ BPI lost nine points and now reads 1,445…

Plus five points for the Supras’ BSI now at 963!

Minus one point for the Handies’ BHSI now at 622…

All in all a …Capes’ Market and that’s NOT healthy  a t   a  l  l  !!!

The Wets gains continued; the last published BDTI (Dirties) and BCTI (Cleans) stood at 1,212 – plus 32 and 909 – plus 12 respectively; good returns!

AND an interesting report by VesselsValue‘s Senior Analyst Court Smith who has drawn together analyses of three key ship types as we move further into the festive season:

End of year celebration or New Year’s hangover?

Sectors to watch in 2019

Capesize Ton Miles and Fleet Size from VesselsValue
The Capesize market has seen a surprising amount of volatility this year as the prospect of a trade war between the US and China has created market uncertainty for buyers of raw materials. The market took an unexpected dip in autumn as a result, which then disrupted what was otherwise a strong year for dry bulk ships. The prospects at the start of 2019 are fundamentally bearish. There is a strong seasonal dip in January and February in ton mile demand, and the fleet size has been gradually increasing.

Large LNG Ton Miles and Fleet Size from VesselsValue
The LNG market faces a more complex outlook. The global thirst for cleaner fuels has continued to increase and hire rates for ships remain near $200k/day. However, a warm winter so far in China has depressed some of the immediate demand, and ton miles have nudged downwards. The long-term prospects for this market are promising, but the market has likely peaked for now.

MR1 Ton Miles and Fleet Size from VesselsValue
The MR1 market appears to be structurally dropping after improvements in cargo volumes in 2016 and a steady 2017. The fleet size has started to contract though, which may help offset some of the drop in demand.

The WTI as these lines are written stands at US$ 51.11 – a bit on the falling side after same early gains… and yesterday’s US$ 51.65… we shall see…

Geopolitics in real mess and UK PM Theresa May comfortably wins vote of confidence.

Reverting later on, until then remain on guard for any eventuality emanating from Pirates, Terrorists, Criminals and Business Hooligans wherever you are on Planet Ocean.

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