Home Marine InsuranceBribery and Corruption The Markets: All you need is power
John Faraclas

John Faraclas

The Markets dictates that you have to be very powerful and well placed to survive, alternative make it look …cool!

For a fifth week the shipping markets and its main dry index remained …afloat above the 1, 000 point mark, but struggles to maintain this four digits due to uncertainty, speculation and loss of power by some of the market’s “stakeholders”.

The week maintained all the ingredients and faults we have numerous times declared and stressed as more than important to have and lead to a stable, even low, but health and promising dry market – equally the wets were a bit pathetic…

Indeed modern tonnage makes the difference as even one day can be detrimental, given under which rules, specs and regulations ships were constructed!

In this thirty-fifth weekly recapitulation of the markets and world geopolitics affecting same, tonight Friday the 12 of September 2014 of www.allaboutshipping.co.uk with John Faraclas in London, we are giving you a quickie glimpse of what might happen:

This  1, 181 points of the BDI is still 1, 066 points below the closing of December 2013, a 48 centum flat percent down level and a long way to go to a really break even market! Coincidentally, see what happened in 1, 066, try to interpret same with the markets and see what happens next.

The Shipping Stock Markets aren’t that good either; just check the figures and you can easily judge. We repeat that many companies will go under; remember this. Already many banks have distressed tonnage and don’t have a solution, believe you me…and continue the messy situation with incalculable repercussions in the very near future…

  • The BDI closed down five points since yesterday Thursday the 11th  of September at 1, 181 points, but was up 26 points since last week’s 1, 151; it eve went up to 1, 197 but there wasn’t much strength there and started a bit of a down fall…
  • The BCI closed down 24 points since yesterday at 2, 546 but 63 points up since last week’s 2, 483 points
  • The BPI was also down 20 points at 875 and 56 since last week’s 931 point. Capers and Panamaxes dominate the volatile environment and it remains to be seen what is net to come. CAUTION!
  • The BSI was up  six points at 1, 006 and nine points up since last week’s 997 points
  • The BHSI was up just one point since yesterday at 477  which is also eight points up since last week’s 469 points; peanuts…

We are living in interesting dry-bulk freight market times… Nothing is perfect; only Nature is perfect, hence… naturally, eh!

The wets on the other hand, produced mixed …feelings, the dirty and its respective index the BDTI closed down 7 point at 645  which is also 32 points since last week’s 677 points and the cleans showed a BCTI up one point since yesterday at 561  which is down one point since last week’s 562 point…. Oppps!!!!   

Remember, it’s all down to greed, the biggest of humans sin, that the markets stand where they stand. Long before MP Jesse Norman convinced the house about …the leader of the sins, I did so back in Autumn 2008 during my live interview at the then  “MARE & TERRA magazine… By the way, I wonder if there is a ship called “Greed” or “Greeedy”…

On the World Stage now:

  • Ukraine: More than a total mess. Still early days… NATO flexes its muscles, but so does Putin’s Russia. An interesting melee is on the cards… Sanctions will never work. There are other means to curb the  Russian appetite, but who dares…?
  • The Middle East and its periphery: The play begins to enfold now. Too many issues are at stake and a total mess is on the cards… Watch it!
  • Libya: There is more to come…
  • Europe: Continues to be and or becoming a major liability….Scotland’s YES or NO vote will in any case open the Pandora’s box of many  revelations and revealations;  and Greece the countries to watch… By the way, Madame Lagarde’s comments in her FT lunch on Greece are not just shocking, but pathetic. She better looks after the skeletons in her cupboard. I guess she’s is jealous of Frau Merkel…
  • The Far East: China slows down; other will follow suit… And what will happen to China’s exports and investments if the Suez Canal closes yet again… Some might see this as a strategic game from those forces looming in the background. 1967 revisited or not can happen yet again. How will Japan react to all this? And what about Indonesia trying to balance on a strange way its imports and exports… Wonder what is your view on the Shanghai co-operation council… As said: we are living in interesting times…!
  • In Africa the Ebola deadly virus must be curbed….
  • The high alert continues and same options should be watched worldwide, not just in the UK and countries on ISIS’s target list… A pre-emptive intervention, a must. We must end this mess before its too late… September 11 should be our guide to avoid another mess!
  • Illegal immigartion… oh well president Erdogan is now, repeat now going to take things serious with the war against ISIS, given the human trafficking from – and to and from,  his country. I am sure, being the son of Coast Guard officer, he should have done this immy he got in the high place as a premier. a decade ago It is a dangerous endemic, a pandemic for the thousand coming over to Europe in Europe mainly via Greece from all parts of the Asian Continent and its periphery – as far as from Afghanistan. Remember that his regime, politicians and military were intruding to the checks , seawise and airborne ones performed by Frontex… Equally all should be checked in where they go given the cover up of innocent travellers to these dangerous and warring zones supporting ISIS. ENOUGH! The “Maritime Accidents” occurring and the loss of human life is incalculable when the boats capsize or after same are sunk on purpose by those onboard and the gangs who operate them! Greece, Italy, Spain to name but a few countries do suffer from all these actions. Lets see who can tell us we are wrong!
  • The 7th Capital Link London Event is just ten days away; it promises great debates…
  • The Athens Exchange 9th Road Show takes place in London next week; interesting speeches by Greek ministers will be tackled with appropriate questions… Despite what is the international perception, Greece is in the road of  and to recovery; remember: Airplanes take off against the wind… Obviously you need red devil pilots. The skippers know well how to confront the weather.
  • The Countdown on WISTA-Cyprus 2014 International Conference for 7-10 October has begun. The big Connecting event is on its way!

Now you know a bit of the issues influencing the freight and other shipping markets.

On another tone now…

  • The eleventh tip for your summer vacation: The Greek Island of Spetses – a tranquil environment awaits you there. Have fun! Make it the time of your life. Many interesting things await you there. 
  • Will fully brief you on the New York fashion week – just ending as well as the one in the UK, The  London Fashion week, just begun… Fashion is in fact a part of Shipping Business and Sporty life to all intents and purposes…

Enjoy the weekend wherever you are!

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