Shipping Market …Cyclone; inexplicable changes at the rock bottom. And then…

John Faraclas

Our forty-eighth weekly recapitulation of the shipping markets, their respective main indices and world geopolitics affecting same in 2015 and beyond, tonight Friday the 27^th of November 2015, with John Faraclas of AllAboutShipping in London.

• The BDI closed UP 19 points since yesterday Thursday the 26^th of November at 581 which is 83 points plus since last week’s all-time low of 498 points! What a dive that was!
• The BCI was up 91 points at 989, which is 383 points plus since last week’s 606! Volatility you say… Seasonality we counter! One size cannot change the otherwise still downward market!

• The BPI was minus three points since yesterday at 456 points, and seven points down since last week’s 463 points… not good at all!
• The BSI was stable at 467 points (same as yesterday) but five points down since last week’s 472 points, and the..
• The BHSI was also down, but just one point at 283 which is five points down since last week’s 288 points!  With the “exception” of the “seasonal” capers, the markets continue to dry-out…
• The wets now and the last published indices: Dirties and its BDTI index stood at 899 points, which is five points up since the last published and 16 points up since last week’s 883 points.
• The Cleans and the respective BCTI was up four points at 526 and four points up since last week’s 522 points…
• On the Ship Sale and Purchase front, things continue to be: promising markets in all fronts! The LNG is a good factor!
• All in all NOT a nice picture and may listed and not listed companies are in tatters…
• The price of oil plays between US$ 40 up to US$ 45… Caution; we need one index!

On the geopolitics front:

• The ISIS thing opens the Pandora’s Box of … warfare! Once again Russia and Turkey at odds and the world goes round, AND indeed we have warned you long time ago in writing. Downing a Russian war plane entails strong guts; let’s see if Turkey possesses same!  The UK is about to go to War too… Syria will dominate the News for a long time; so will the rest of its periphery!
• Add the Migrants issue which goes worse. An otherwise easy issue to handle, but…
• Ukraine is not able to meet its financial obligations and pay Russia, which in turn cuts off supplies…
• Greece continues as messy as ever. Expect surprises in all fronts. The government wants to create the Greek Shipping Cluster, a proposal by undersecretary of Industry Mrs.Theodora Tzakri based on manufacturing process and many other factors. We have heard these ideas and plans many times before; can she do it? Can she deliver? We shall see. It’s an oxymoron, Greece the number one shipping nation NOT to have a Maritime, Shipping or whatever you like to call it, Cluster! Let’s see what the Minister of Shipping and Islands Policy Thodoris Dritsa has to say in his speech at the Piraeus Marine Club on the 10^th of December. The day before the president of the Chios Marine Club, Markos Tripolitis will deliver yet another speech on “The Transportation problem of Chios and Proposals to resolve it” at the Metropolitan Hotel in Athens. There was one earlier on in Chios on the 29^th of October.
• What’s happening in China? How’s the economy there?
• What about Brazil? Two of the BRICS in hard times or what…?
• The IMO’s new Secretary-General Kitack Lim of the Republic of Korea and President of the Busan Port Authority takes the helm! Good luck!
• The UK’s Black Friday shopping offers did well yet again!
• Finally, we continue to invite the world to visit Greece and its islands even at this time of the year; that will counter as a plus the troubles Greece and its people are still going through; add the migrants issue. We repeat that Greece is for all seasons! We will also continue to repeat the fact that the Turkish government by allowing the traffickers to move the migrants to the Greek islands not only spoils Greece’s tourism but will eventually create the worst explosion in the East Med… Let’s see what Europe does to Turkey and relax their leaders so we all avoid the big clash! Bluffing with the Turks as Germany and France as well as other countries in Europe and the US do, will only make things worse. We cannot accept any further Turkish blackmail! It seems that Europe over the last 200 years doesn’t have a clue on how to deal with the Turks! As said in the preamble of geopolitics the situation can get off hand. Putin has a name for it… Erdogan must realise that at the end of the day, his game is over… Just remember this! Unless…

Now think about visiting the Greek islets of Fourni between Ikaria and Samos in the central eastern Aegean Sea! Or the holy island of Patmos nearby? Go for it!   Still an exceptional weather all over Greece. On the other side of Europe try a holiday anywhere in Denmark and outside Europe try Venezuela; a great place for good holidays all year round!

Have a nice and peacefull Weekend!

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