The BDI@907 amid fast worsening geopolitics

Chartering, Civil Unrest, Dry Bulkcarriers, Markets, Military, News, Reports, Safety and Security, Sanctions, Shipping Indices, Statistics, Stock Markets, Tankers, Trade and Commerce — By on January 3, 2020 at 11:50 PM

John Faraclas

The BDI@907 amid fast worsening geopolitics

The BDI (Baltic Dry Index) lost another 69 points since yesterday thanks mainly to the Capes and bunker prices pressing rates down. There will be corrections in …both directions so all stakeholders have to be ready for every eventuality. 2020 is on and we all await more hiccups… On top of everything else the long awaited American surgical strike eliminating Iranian general Qasem Soleimani in Iraq earlier on today will add to the markets jeopardy and instability in the Shipping industry and elsewhere. John Faraclas’ brief market and geopolitics recap:

The Capes again on a triple digit fall with the BCI down to 1,507 points – down 139 and losing the 1,600 point threshold. CAUTION!!

The Panamaxes’ BPI also lost an important threshold that of 1,000 and now stand at 949 points – down 54!!

The Supras’ BSI lost 23 points and now reads 662…

The Handies were also down 13 point with the BHSI reading 452…

The Wets with mixed feelings; the last published BDTI (Dirties) and BCTI (Cleans) stood at 1,517 points – up 14 and the 888 – minus one respectively amid the new developments in the Middle East…

The WTI rose nearly two dollars to US$ 63.05 (from US$ 61.08). CAUTION as things might escalate due to the developments with USA and Iran; being as always “cynical” we can live with even the barrel hit US$ 147 as it did in Spring 2008, remember eh!!!

Irrespective of the events in the greater Persian Gulf region, the general situation / global events and other issues are not rosy for the Markets – both Dry and Wets. The real fundamentals with respect the situation vis-à-vis the economy all over Planet Ocean are very much different from those the Criminals and Business Hooligans spread around. We are in the third year of yet another deep recession and with a world-wide war raging in too many fronts things are getting difficult as those in control have their own agenda and whether we like it or not they will proceed and pursue same further with incalculable damage to humanity. What matters now is to be with the side of the winners in this conflagration… Wonder not who will write-off the Global Debt, but who can eliminate same from the US$ 255 (Twohundredandfiftyfive) trillion that it stands today!!

We wish to see ultra-security in place for all of Planet Ocean’s Dire Straits: Aden, Kiel, Corinth Canal, Dardanelles, Gibraltar, Hormuz, Istanbul, Malacca Straits, Otranto, Panama, and Suez Canal as well as extra security in all ports as Pirates and Terrorists can strike. Piracy is on the up lately; try and read respective reports. Moreover we need to see in place extra security in the high seas… You never ever know what can happen.

MIGRANTS: still the top issue with Greece being the country mostly hit. No more hot spots please is the real verdict of Greece’s islanders; hands off from Chios. Let Mrs. Merkel house them all –  she runs the show in Europe so let her clean up this mess!!! Turkey’s Erdogan and his backers one day will regret their sins including blackmail but it will be too late.

The EASTMED pipeline signatory nations Cyprus, Israel and Greece and their supporters might in tandem overcome all threats in their turbulent neighbourhood and with the EU’s full support develop a new era beneficial to all…

The faulty line from Gib to Afghanistan and from the Caucuses down to the Horn of African with over ten hot spots is now within the eye of the Cyclone… What we will witness will be beyond imagination and this will greatly affect trade… With too many fronts still open and more erupting trade and shipping will become very expensive… Wonder what the Chinese will do in case that the Suez Canal closes yet again and if the Straits of Hormuz are completely off their limits to navigate… After all the World can still have oil from the USA holding the key for having the industry running; Shale is the buzz word complemented by good stocks!

Europe with the energy jargon still in a mess and its southern region with the mess still in Libya an issue… must have a robust and coherent policy. Libya is vital for Europe! Turkey pushes hard but let’s see the end result… Just to refresh your memory, Tukey and Libya had very close ties and in particular the shipping field but few paid notice in the 70’s and 80’s…

All in all mind the religious factor as this will trigger many wars and despicable situations…

Russia tries to capitulate all over Planet Ocean but NOT yet. It’s still a Nyet! The Globe doesn’t offer that the Russians and their allies wish… The USA, China and the European Union will hold on…

The USA lives in the pre-election period, that’s the real fever there, with everything possible. President Trump will do everything in his capacity to be re-elected. Wonder what can be the Democrats response. For the time being the impeachment issue is secondary for the American people

BREXIT sounds quiter for the time being but as said in previous reports it’s not over until is over. It will be a very complex situ as it engulfs many internal issues of the United Kingdom – Scotland being an important issue…

Latin Central and South America in economic dire straits. We did mentioned our views from all the nations there with the economic situ / credit crunch being in its all time high. Can Argentina overcome the new mess? Is Bolsonaro RWA to offer Brazilians a better future? And what about Chile? The Venezuelan mess which “sounds” silent as news are shifting elsewhere is still on…eh!!! Colombia… Peru… Bolivia… all in a mess…

Africa too become the field of proxy wars with the Chinese trying to oust the previous two centuries’ colonialists… Watch the upcoming new confrontation in Africa…

In the Pacific basin and Subcontinent things seem quieter too as the media agencies concentrate in other news and have “put” a stop in the issues there, namely the North Korean nuclear threat, the Indian – Pakistan confrontation, which in our view will happen not just for Kashmir but for other issues. The early 70’s war didn’t solved the main problems… The South China Sea “seems” quit but….

Japan is closely watching all developments; Japan is in its own right a super power!!

No end to the Australian bush-fires and let’s hope the rain will continue as conditions there are deadly and in the future respiratory issue will bother thousands… It looks as if the bush fire will continue…

That’s all for tonight; have a nice and long weekend – the Eastern Orthodox World Celebrates the Epiphany – Greeks and Cypriots; all others, Russians in particular their Christmas (7th of January)… Be on guard from Pirates, Terrorist, Criminals and Business Hooligans whatsoever wherever you are on Planet Ocean!

Tags: ,

Leave a Reply

IMPORTANT! To be able to proceed, you need to solve the following simple math (so we know that you are a human) :-)

What is 10 + 14 ?
Please leave these two fields as-is:

Trackbacks

Leave a Trackback