John Faraclas’ live interview last Friday the 1st of November to Lilian Margaritis of SBC TV brings the entire shipping industry to an ante portas situation: shipping in dire straits
With the BDI down to 1, 525 points – down 146 points since Friday (25/10), and even down to 1, 474 points on the 30th of October, proves Faraclas’ view that shipping is in dire straits, that the market is week and things are getting sour… Volatility and uncertainty …at its best! The BCI at 2, 316, down 365 from the previous week and the Baltic Panamax Index down to 1, 631 – over 573 points down since 25/10/2013 what does one expect? The smaller tonnage though – BSI and BHSI “performed” a bit better with a plus at 1, 273 and 669 from 1, 258 and 649 respectively from the previous week.
The Wets stable downwards at 595 and 487 for the BDTI and BCTI respectively…
Mrs. Margaritis asked what’s the remedy for the markets and Faraclas said that: “Owners must re-draw their moves before it is too late. There must be a plan B, C, D or even an E plan and that only those quite powerful will survive”. Despite the falling markets the sales and purchase activity wasn’t bad with ten year old panamaxes sold in the region of US$ 14 -16 mio confirming Faraclas’ view that he buyers’ market is here to stay for those with cash in their coffers!
Other issues mentioned where the Moore Stephens “Ship operating costs seminar – current and future trends” with the costs rising 3 centum for 2013 and 3, 2 centum for 2014…and the London Shipping Law centre forum on “Effective Disputes Resolution in the Emerging Markets” at the Linklaters auditorium.
The above and other matters included that of Greece’s ailing shipyards can be heard in the video above and soon with subtitles in English. We look forward to your written comments.