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John Faraclas

John Faraclas

With a 63, 46 percent downfall, since the end of December 2013, the BDI is collapsing and unless we see a …”correction”, things will continue to get sour; the same more or less prevails in the wets! We refer to a “correction” just… to give the market a chance, as well as to “please” those gurus who made it a real mess – at the expense of the shipowners, the banks shareholders, and as it happens, to the tax payers – to verify for themselves, that nothing will bring the market up and that their manipulative market reports and expectations are not even good for the bin… We are proud having predicted the markets so far, despite the criticism we received, for which we don’t give a damn as same was the honest thing to do over the last three years and not be …on par with the hoi polloi!

We are now well in the second half of this turbulent year, an annus horibilis for the shipping world, if I may say so, given what happens in the markets and world politics, geopolitics and the global economy. This is our twenty-sixth overview today Friday the 11th of July 2014 of www.allaboutshipping.co.uk with John Faraclas in rainy London.

  • The BDI closed down 22 points since yesterday the 10th of July at 814 points, which is down 79 points since last Friday’s 893 points! This is now very close to the 800 points barrier which looks likely it might go even further below, “unless”…
  • The BCI, closed down 58 points to 1, 465, which is 399 points down since last week’s closing of 1, 864 points… Volatility or what…?
  • The BPI was also down at 679 points, a fall of 23 points since yesterday, but up 39 points since last week’s 640 points…. Strange eh! A very mixed picture!
  • The BSI was coincidentally at 679 points too (alike the BDI), which is down 2 points since yesterday, but also three points down since last week’s 420 points…
  • The BHSI also down at 390 points, which is minus three since yesterday and 13points down since last week’s 403.

So overall: a collapsing dry market! The message: Be ready for every eventuality!

  • The wets again a surprise…yet again with the BDTI up 22 points to 774 which is up 24 points since last week’s 750 points, but the BCTI was down 3 points to 524 which is a further 14 points down since last week’s 538 points…

Despite the above, we reiterate our view that this is the best market even for new start-ups!

The World Stage now:

  • Iraq: Far worse than one could imagine; there is far worse to come!!! Coupled with the Syrian events…
  • Ukraine: will produce further tremors, as it becomes the “fault” line of the East and West. Except further mess!!!
  • On top of the two regions (not just areas) above, the Middle East, meaning the Arab-Israeli conflict has begun with a ferocity that unless same is curbed, it will mean another 100 years of a very messy revenge; read this again and again. Do we need diplomacy anymore? Eh!
  • The Far East with events slowly enfolding in the South China Sea, North Korea’s test et al, should also be well monitored.
  • The tough times in Europe will continue and we are warning of a sudden social explosion… and caution for all. Austerity et al, are counter productive; just wait and see…
  • As we said last week “Threats for attacks by terrorists et al are on the way and lets be on alert. Not a nice time amidst the summer vacation…”, we were once again verbatim right. The measures though of many governments, will prove nonsense and also are totally unconstitutional. From the one hand they intervene to our communications etc., etc., but from the other hand they “allow” fighters to go and fight in Syria and other places, and the latest with the young lady having money in her knickers is shear madness… There should be controls for everybody on where they go and why. Religion makes things even worse!
  • Piracy is re-appearing too…
  • The loss of 114 files in London, part of the Westminster paedophile ring, is yet another despicable scam…. Too many skeletons in the cupboard…
  • By the way, do they have in Greece the files of all those who embezzled money, particularly a great number of Greek politicians and the cronies? Same applies for all other countries; fairs fair!
  • We hope things will be rectified down there. Greece will for sure enter a new course, and the soonest the culprits are named and shamed, the soonest the country will thrive: Its stock market will take off, its oil, gas and other resources will be exported – do count on greek gold!

All these events and others, greatly influence and affect the shipping industry.

Anyway let’s see how the World Cup ends in Brazil; we did predicted in writing that there will be surprises (the 1-7 between Brazil and Germany is a factum and one of them). As for Wimbledon, Eastern Europe thrived! A Czech young lady and a Serb young man did it!

Tip for your summer vacation: Malta.Yes, Malta is our third tip  – after Lithi in Chios, Greece and Sozopol in Bulgaria, where you can have a great holiday! Small place big fun!

Do please view the live video when same is available.

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1 comment

Graham Barnes July 15, 2014 - 9:55 AM

Dear John,
I agree with everything you say but your have omitted mentioning anything about the turmoil and economic chaos of the EU and the euro.


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