The Market dips further…with the BDI from 2066 down to 1512

John Faraclas

This Friday’s live interview at SBC TV’s studios earlier this afternoon with John Faraclas being questioned by Lilian Margaritis, confirmed once again our fears: Instability, volatility and caution as things get sour…and the markets drop dramatically.  We did said it: “I cut my neck that the market will be down” (John Faraclas on the 3^rd of January when the market results from the Baltic where not available due to technical reasons) and the market, the BDI index lost a further 554 points – from 2066 down to 1512 in a week’s time with the Capes losing 399 points in just one day; needless to say what happened to the rest of the other sizes/indices!  Thank God the wets where a bit more balanced with the BDTI closing at 1041, up 15, and the BCTI closing down at 613, just five points down…

Lilian Margaritis said that (given the above figures) the year begun with difficulties. Faraclas said that the overcapacity still continues and there should be an end to excesses… if things continue everybody more or less will be affected. He explained that he is not a prophet nor www.allaboutshippings.co.uk analysts section, but simply professional pragmatists and predictors giving the best and true prognosis without cheating the stakeholders in the industry

Other issues discussed where the taxation of the Greek Government against its shipowners, the Greek Presidency of the European Union which just begun, the effects of the announcement this week that additional reinsurance premiums for policy year beginning 20 February 2014 ships under the International Group of P&I Clubs. Moreover he said that the UK in particular has now in place more attractive schemes to attract back new and old shipowners; its tonnage tax becomes more attractive like many other countries… Faraclas said that in the mid 70’s there where over 3, 000 Greek flag vessels versus 1386 that the current shipping minister says, and 840, the more pragmatic figure for ships just over 1, 000 grt! He was more than pleased that in less 24 hours, the President of the Hellenic Chamber of Shipping, George Gratsos share the same views, more or less verbatim, that  Faracls said in his last interview on the issue.

These and other issues, particularly that of maritime tourism, maritime sports (yachting and rowing), fish-farms, maritime education and training, the London International Boat Show can be heard in the video below and soon same will be translated into English. We look forward to your written comments: