The BDI@725; a double digit rise but…

At the end of the day..., Chartering, Markets, Piracy and Terrorism, Reports, Sales and Purchases, Shipping Indices, Tankers, Trade and Commerce — By on April 9, 2019 at 11:59 PM

John Faraclas

The BDI@725; a double digit rise but…

The BDI (Baltic Dry Index) gained 11 points since yesterday amid a worsening geopolitical environment… John Faraclas’ brief daily recap:

Wonder how you interpret Aristotle’s maxim: “Nothing matters much and very little mattes at all” under the current circumstances and parameters and how shipping and trade – including commerce, might turn out “tomorrow”,  or “this coming summer”, or “at the end of the year”, or “at the beginning of 2020 with 20|20” and all that juzz coming up. How many shipping companies – private (mainly tramp), listed or whatever – including state-owned ones will be still with us…

The messy Capes’ on “reflection” from yesterday  were up 63 points – yesterday it was plus 36 and now the BCI stands at 375 points…

The Panamaxes’ BPI lost 16 points and now reads 1,085 losing the 1,100 points threshold…

The Supras’ BSI was also down at 726 – minus seven points…

Losses for the Handies’ BHSI now at 419 points – minus six…

Meantime and given the Capes’ mess we have an interesting note / report from VesselsValue given the fact that there have been no confirmed sales of Capesize Bulkers since December 2018, a break of 110 days. VesselsValue’s Director, Matthew Freeman, and Head Cargo Analyst, Olivia Watkins, provide some insight:

Capesize values under pressure

VesselsValue data suggests the value of a generic fixed age 15 year old Capesize Bulker has fallen 20% from 1st November 2018 to USD 12.2 million today. By contrast, other valuers are quoting figures or estimated ranges 15-30% higher.

..

Company Director Matthew Freeman says: “Whilst no sales have been concluded yet, there are a number of negotiations in the market and around 10 to 15 vintage units in circulation.”

Olivia Watkins, Head Cargo Analyst, points out: “No Capesize sales have been confirmed since the 19th December 2018, a break of 110 days which has never been seen in the market before. On the contrary, 13 Capesize vessels have been confirmed for demolition since January 2019, mostly with delivery to Bangladesh.”

The WTI as these lines are being written stands at US$ 63.98 (23:00 BST); it went slightly upwards… (from US$ 63.71 as of 16:10 BST)… That’s .52 cents since yesterday’s  US$ 64.40… Wonder what you think as the USA becomes gradually a great exporter…

On the Geopolitical front the MIGRANTS remain the number one issue for a multiple of reasons in both sides of the Atlantic…

In the USA; Following the dismissal of Department of Homeland Security Secretary Kirstjen Nielsen – who quited last Sunday we’ve seen also the resignation of the agency’s acting deputy secretary Claire Grady… There were eyebrows by Rep Senator Chuck Grassley who called president Trump yesterday to stop the leadership purge at the DHS. Add the fact that president Trump is more than upset with the ruling of the 9th Circuit judge for blocking his policy of sending asylum seekers to Mexico and see what you get… In March there were 100,000 border apprehensions…

In Europe, Greece in particular  there was yet another issue with MIGRANTS having info that they could go to Germany and the massed to the border of Greece with North Macedonia at Idomeni… There are more and more MIGRANTS issues upsetting all!! Courage and political will is a must and the UN too must find the Right solution… It’s getting off hand!!! The Social Cohesion is about to break…

The Situation in the Middle East “coupled” with the Israels’ parliamentary elections might “inspire” and “ignite” the situation further. It’s not just a perplexed situation which day by day becomes another Yellowstone “liability” as there are too many issues at stakes and a bit of a biased attitude from all sides in this equation… We all await the formation, once again of another coalition by either former military men!

The Syrian and Iraqi upheaval might re-start…

BREXIT’s twist and turns end up even in 3M’s – not 3M the company, not the Chian 3M but BREXIT’s 3M (May, Merkel and Macron)… we’ve read even a 4M… acronym: May’s Merkel meeting misfire… Will an extension do? Whose really in trouble? The UK or the EU? At the end of the day it turns out to be a “game” for strong and patient nerves… Still one has to expect the unexpected… We are living in interesting times…

All in all  firstly Planet Ocean’s region requires a good but pragmatic streamline in the faulty line from Gib to Afghanistan and from the Caucuses to the Horn of Africa which includes the Balkans and the entire Middle East flash-point… The second one is down in North South America with the Venezuelan saga “ready” to make it another Cuba so to speak and bring us back in the days of the late JFK and Nikita Khrushchev… wonder if we are going to have another Vienna Summit style meeting again… CAUTION…

On another tone and note LSLC YMP’s seminar was a full house of young maritime professionals eager to learn the latest trends of the market. The panel consisted of Ravi Aswani (36 Stone) who discussed “The SUR” case in relation to Geographic deviation and fundamental breach of contract and Jai Sharma (Partner, Clyde & Co), who discussed the “CMA CGM LIBRA” case in relation to planning and seaworthiness. Ian Woods of Clyde & Co chaired the panel at the firm’s offices at the St Botolph Building. A nice reception followed the seminar, where the attendees had the chance to discuss the cases above further.

Hugh McCoy,  always close to the new generation; here with Alexandros A. Tsavliris

Finally,  a sad note: Hugh McCoy, captain Hugh McCoy a very much respected shipbroker begun his trip to the sea of eternity. He did have an interesting career at sea with BP before entering the shipbroker arena. A very much respected ships sales and purchase broker he successfully headed Clarkson’s during shipping’s most interesting 30 years of a very much turning and changing market… He also become the chairman of the Baltic Exchange. Having met him and receiving his unsolicited support during one of my speeches (you will read this in my memoirs the “Black Sea Manoeuvres”) I can confirm his impartiality and judgement… He could also communicate in Greek as and when needed!!!! He will be greatly missed. Blessed!

Have a nice evening and remain on guard from actions emanating from Pirates, Terrorists, Criminals and Business Hooligans whatsoever wherever you are on Planet Ocean…

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