Being cool and thinking positive, subject you have in place well in advance a contingency plan based on a pragmatic risk assessment, pays off! John Faraclas comments:
You might think or believe that the collapse of the BDI and the drop in the stock markets – with China being in a messy situation, as well as other geopolitical situations, is the end of the day; wrong! This is precisely the time to grasp the momentum and gain as much as you wish given a good balance sheet, money available in any form and good knowledge of sales and purchase formulas.
The blessed time of a buyers’ market has arrived and it is here to stay, but you need to have the above prerequisites and a few other credentials and charismas to go ahead from the hoi polloi! Add a good house broker to fix you. There is plentiful of hope and optimism in this particular market but as have said numerous times in the past only for the very very few! Remember, despite all this mess, there are eight billion tons of cargoes to be carried, most of them being dry bulk! Just check it! And War will be there to assist you, as it was always been the golden rule in this transport saga!
LNG and LPG are also in demand!
Time to punish too the shipyards and all their accomplices who raised the vessels prices to disproportionate levels given the wrong length of repayment projectability and freight rates too.
A good knowledge of geopolitics can also be of great assistance. In the absence of regulation in the shipping field, one has to learn to swim alone!
Long live the low market! Thank God Poseidon that the bubble burst now… For a long time we have warned you of what is yet to come, but few controlled their greediness and few really knew how to navigate in turbulent waters… Few knew when to sell and whn to buy and more importantly what ships to buy!
For the record, the BDI was down 22 points at 445, the BCI was 68 points down at 399 breaking the 400 limit barrier, the Panamaxes and the respective BPI down 14 points at 450. The BSI down six at 436 and the BHSI down four at 259!!!!! Mixed …feelings, as always for the wets with the last published Dirties’ BDTI down six at 1, 051 and 719 for the Cleans’ BCTI up seven! The price of oil to a certain extend plays it role, but now we have other exporters too! The WTI settled at US$ 33.27 and the Brent at US$ 33.75; that’s the lowest since end of 2003 and April 2004 respectively. Will it drop down to US$ 25? Will it surpass the US$ 75 within this year? What will be the influence of Shale?
Whatever happens this situation will be to the benefit of the Markets and its few good players; some people feel the rain, others just get wet! Again I have to repeat; we are living in interesting times!
P.S.: Keep your cards close to your chest!