The shipping markets: be on guard…despite Capes and Panamaxes being in “demand”…
“With the BDI climbing to 1, 904 point, a 368 plus since 13 September and 725 plus since Thursday the 5th of September, the barometer changes positively but it is now more than worrying”. Faraclas stressed in the opening part of the interview. Ms Margaritis questioned the reason behind this controlled position that Faraclas maintains all through this period.
The Capers at 4, 018 and the Panamaxes at 1, 453 points of the BCI and BPI respectively create a markets good “look”, but one shouldn’t forget that September to October every year, despite the market trend, the indices are “climbing a bit” as there are “obligations” for already fixed cargoes to be delivered.
Faraclas stressed that there are no funds around and many companies are going under worldwide, with banks being worried for the day after… Add that the BSI and BHSIs’ increase is minimal to stable and on top of everything else the wet cargoes BDTI and BCTI are stable to downwards…
Faraclas mentioned the view of Paul Lead from AMA Capital partners that although 15 years ago there where US$ 2 billion in the stock markets invested on shipping which rose up to 50 billion, this amount is now on a reverse… The Germans wonder how the Greeks market and sell themselves better in Oslo, New York and London and why they fail… He criticised the KG companies whose historical success become a catastrophical disaster and warned of the financial pattern of the shipping industry.
Moreover he mentioned the impact of wrong thinking in the Ministry of Mercantile Marine and the Aegean vis-a-vis the end of the collective agreements of Seafarers in Greece and the “adoption” of free contract of engagement agreements, the COSCO – PPA (Piraeus Port Authority) saga viability and the problems arising, some being legal ones and praised the London International Shipping Week saying that London tries to dominate the industry as the Centre for Shipping, whilst Greece with the biggest beneficial fleet hasn’t as yet get its act together and make Piraeus the centre for International shipping. Lilian Margaritis said that this matter, as its is contradictory, will be fully analysed in one of the forthcoming interviews.
The above and other issues can be heard in the video which follows herebelow and soon with subtitles in English. We look forward to your written comments.