Another record was “set” today and the Baltic Dry Index closed down at 516, six points lower than yesterday. John Faraclas writes:
Many questions remain unanswered on the shipping markets and the situation in the industry so far; herebelow please find some of the most FAQ discussed :
- Are we reaching the bottom?
- How this affects the shipfinance industry?
- And what about the shipyards?
- What happens with the OPex?
- For how long this situ will last?
With the exception of the BPI (The Baltic Panamax Index) which closed up just three points at 508, all other dry indices where on a downwards trend: the BCI down 25 at 589, the BSI stable (no change) at 480, the BHSI down 2 at 261 points…
The wets and their respective indices had mixed …pickings, with the Dirty and the BDTI at minus 10 at 853 and the Cleans up 2 at 579, but still on the very low side, question the future.
Many blame the state of the world economy, which despite other indices’ positive gains, in reality the world economy is in a big mess… and it is expected to continue. We live in a world of a major financial disaster, a catastrophe if you like it! OK, fine we cannot tackle natural disasters, tsunamis, earthquakes et al; we are simply powerless; but social and technological disasters we can avoid and correct! And what about financial scandals and disasters which even governments are involved?
We remind you that we have warned you long ago of this present reality; be on guard as there will be an avalanche of further market disasters. Despite this, we reiterate the view, both for the short and long term, that this is the best market levels to enter, expand and have a safe investment in shipping, which promises handsome capital gains when the markets peak up!!!! War save the Markets! Did I hear you say Geopolitics…?
I will end with the famous lines of wisdom from Master Po, in the TV series Kung Fu: “Perfect wisdom is unplanned. Perfect living offers no guarantee of a special death”, and invite you to interpret same in the light of what is happening in the world economy and the shipping markets!