Home MarketsChartering Market and Geopolitical Blues with the BDI@696
John Faraclas

John Faraclas

Now, going under an important barrier might bring in the Aeolus’ winds and the going will get tough; John Faraclas’ daily market and geopolitical recap:

  • The BDI lost 13 points today – now standing at 696, below the 700 points barrier for which we were explicitly sure it will break downwards! Despite the US$ 7, 000 per diem for the Capers and Panamaxes with the …occasional ballast bonus, things turn sour…
  • The Capers’ BCI 2014 lost 36 points reading 841…
  • The Panamaxes BPI lost 22 now at 784 and the Supras’ BSI was down seven at 690 points.
  • “Good” news for the Handies’ BHSI, the only one with a plus modus – gained four points approaching the 400 point mark at 390!

So all in all a dropping Dry Market with whatever this entails.

  • The Wets too on a minus modus. The last published BDTI (Dirties) and BCTI (Cleans) were both down three and two points respectively at 579 and 461 points!
  • The price of WTI, as these lines are written, stands at US$ 42, 99 below the US$ 43… caution both ways. The oil majors et al feel the damage with a few billion dollars losses!

This is still the best ever buyers’ market – we will continue to mention this, we have ever seen, as it is 11, 097 below the zenith / boom of the 20th of May 2008  and  406 points above the absolute (until now) point on the 10 of February 2016 when it touched the rock bottom at 290 points, the nadir so to speak. So, go out there and use wisely your buying spree talent!

Half Year DeliveriesAs we are now over half way through the year, VesselsValue have taken a quick look at the number and value of all the 2016 built vessels that have been delivered so far vs how many are still yet to be delivered. They say that: “So far this year $28.4bn worth of vessels have been delivered however there is still $43.8bn is left on the orderbook.”

An excellent study / analysis so do please see the attachment herebelow and be in the picture of what actually takes place right now. An excellent info at the right time!

Delivered vs Undelivered 2016 Orderbook (1)According to VesslesValue, the LPG deliveries are on track for the year, with 50% of the 2016 orderbook having been delivered (worth $3.0bn). However there is still 80% of the OSV orderbook still undelivered, valued at $5.5bn. Its Valuation Analysts say “…many of the undelivered vessels in underperforming markets are candidates for slippage: the vessel’s delivery date may be pushed back into the next few years.”

Very interesting!

On the Geopolitical front now:

The Migrants continue to be the most important and crucial issue world-wide to all intents and purposes. Unless we short this out, things will go from worse to worse! They continue to cross over from Turkey to the Greek Islands, from Libya to Italy causing chaos to the small communities particularly in the Greek eastern Aegean Islands. We have numerous times stressed that politicians are totally incompetant to deal with this issue as they lack political will!

Terrorists continue every day now in the Continent – France and Germany with despicable actions. North West of Paris and in Berlin. Time please, as the public might react too! E N O U G H particularly with both cases; slitting octogenarian Fr Hamel’s throat and all that followed with the other hostages during the mass, they deserved to be immy executed by the special police force. ISIS admitted responsibility… Equally the attack in the Berlin hospital was also another despicable act today, but thank the Olympian Gods it wasn’t connected with ISIS which over the last day its attackers left ten dead and dozens wounded.

Turkey is going through a big change and all things being equal, according to various analysts it seems that the Islamists of Erdogan are going through for the time being. That will destabilise Turkey and the entire region; just wait and see! Wonder what Washington and its eagles have to say and how this matter will be tackled.   Erdogan proves verbatim our expectations during  my interview last year!

BREXIT will shake the markets, but our view is that at the end of the day it will be for the benefit of the people in the United Kingdom. Remember the Commonwealth numbers 1, 6 billion people – the biggest and most powerful bloc on Planet Ocean. All you need to do is the figures; run a trial …err a number balance and see what we mean!

GREXIT too if it happens will give the impetus needed to the Greeks and liberate them from non-performing populist politicians and an opposition in total mess too! It is the European Union bosses to blame for all that happens in Greece and destroys the Greek people.

President Putin is expected now to make the appropriate moves in the region; it is a matter of time. Wonder what he and Erdogan will talk in St. Petersburg on the 9th of August!

The Kurds too are about to move! The die is cast; the World is on fire!

Finaly Hillary Clinton gets Democratic Nomination to run for President; the first ever woman! 


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