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John Faraclas

John Faraclas

Mid-week BDI blues @ 290… and Geopolitics blues; John Faraclas special midweek report:

Drop, …Drop, ..Drop; where’s the stop?

With minus one point the Baltic Dry Index (BDI) stood at 290 earlier on this afternoon. It seems that this is natural given the global situation and the festivities in the FAREAST for the Year of the Monkey… The damage though has been done; so NO further excuses.

The Capers (BCI) clinched a point standing at 208 and the Panamaxes (BPI) was up four at 301 points.

The Supras and the respective BSI lost three standing at 247 and the Handies (BHSI) lost another two clocking 186!!! Are we approaching the rock bottom in the dry sector; yes or no/ only time will tell!

The Wets and the last published BDTI and BCTI were on a downwards trend at 787 (minus four) and 554 (minus 18) creating another messy environment.

Liner Trade: please consider Maersk’s 2015 profits which plunged by 82% as oil prices, freight rates crash… What next for the rest of the Liner Market’s predators?

The price of WTI still fluctuates and the OIL Politics will for sure create another mess! At region US$ 28 and a projection to reach US$37 to 38, does also leave the room for dropping down at US$ 20, or isn’t the case. We shall see what geopolitical strangulations bring… about…

Global growth fears, low oil and other commodity prices as well as civil and religious unrest greatly influence our shipping industry!

A recap of current Global issues:

  • The Migrants saga still continues to be “governed” by geopolitical control and instability, so as to allow some forces conquer the region in a multiple way. Seeing and analysing what takes place with the so called discussions with Turkey, threats against Greece – a real package of threats, but with incalculable repercussions for all involved, the “humanitarian” … glitterati and all these NGO’s et al, do not understand what is the position of those in power and controlling the shots world-wide! Enough from hypocrisy-led politicians and their cronies. This time Nemesis will strike in full force!
  • Germany: a nation to watch given its bankruptcy history and current real economic situation. A country who wishes to have a say in European and World Politics and given its past and indeed current (as we just mentioned above situation AND behaviour) must act otherwise and stay put. Too many skeletons in Mrs. Merkel’s cupboard.
  • Greece: equally a nation to watch but from different angles. A change for better governance is a must. Time please Mr. Tsipras et al…
  • Turkey: Only a full Naval Blockade (have mentioned this numerous times) can work as a deterrent not only for the shameful and inhumane Migrants issue, which led to yet another blackmail from Turkey against Europe, but also for many other issues in stopping short the expansionist plans for all intents and purposes the Turkish governing “elite” has from time to time. Need to see a Turkey becoming a real friendly nation for the benefit of all nations and its peoples in the region, needless to say for Europe! The rest is pure hypocrisy and gross nonsense! It seems from Turkey’s behaviour that the American maxim “new kids in the block” has its match!
  • ISIS: when does those involved – all super powers and warmongers, are going to finish-off ISIS led bastards (excuse my French, but…), but also expose who’s really supporting them. It has taken too long to finish them off, particularly when so many are trying to “destroy” them, but still ISIS evolves as a modern Lernaean Hydra…
  • North Korea: Hmm!!!!  another mess there; time to equally expose their protégés or else!
  • USA: Ms. Yellen’s views on the current state of the USA’s financial conditions must be seriously taken on to account. The world’s most powerful economy is in trouble! The main issue though is the US Election’s result. The new president has to tackle too many domestic and international issue that no other previous one has ever faced!
  • Russia: calling the shots or trying to call the shots is two different things. The Kremlin must explain clearly its plans for Ukraine and the Middle East; clearly, as otherwise the mess will spill over…
  • Northern Africa and Libya in particular: time to end the mess there too.
  • Iraq: in need of a direction…
  • Iran: will return to normality assist in the Middle Eastern melee’s solution and also support trade?
  • Hong Kong: nobody likes unrest! Caution!
  • Zika: after Aids and Ebola, this new pandemic must also be curbed; very dangerous for all!
  • Banking World: needs a clean up… Then we might also see an new order in the much needed and proper ship-finance
  • Dire straits: we must ensure that at all times are opened for shipping and transport…

Conversely, the above dear viewers, plus other facts and happenings around Planet Ocean influence the already low shipping market. Despite all these, this is the best time to buy new tonnage. Have a nice evening!

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