Grounded @720 points the BDI has no alternative yet as geopolitics and the world economic recession are here to stay – even getting worse. John Faraclas weekly Market and Geopolitics Recap:
The BDI (Baltic Dry Index) gained eight points reaching the 720 points matching last week’s closure (26/8) thanks to the volatile rise of the Capers which gained a 52 points plus and now the BCI 2014 reads 1,054 points, up 53 points from last week’s 1,001 points. All other Baltic’s indices where in red!
The Panamaxes lost another eight points and the BPI stands at 644 points; that’s 43 points down since last week’s 687! C A U T I O N!
The BSI after two weeks of continues rise lost two points- now standing at 721, but was overall up six points since last week’s 715 points – Supras under pressure…?
The Handies too where down, but only by point and the BHSI reads 432 – last week’s closure was similar, i.e.: 431 points, so …overall one point plus…! Hooray!!
The Box ships under pressure too.
The Wets were also down, even a bit, but this is not a good sign at all: The Dirties (BDTI) lost one point now standing at 514 points and the Cleans (BCTI) lost six…now standing at 441 points. Compared with last Friday the 26th of August we had a plus one for the Dirties (515 then) and minus 14 for the Clean’ BCTI.. More than caution!
The WTI as these lines are being written 22:00 BST stands at US$ 44.23 – gaining a bit after earlier losses…
The Hanjin saga continues and it will bring many down; the next hours, days, weeks and months will bring chaos for many. Wonder how many knew of these happenings. A good attorney shipping general has to see to the matter as many others have happened before and others are already in the pipeline putting in danger many companies, listed and non! We also wonder what risk assessments and by whom have been performed!
There are many skeletons in shipping’s cupboards; caution…
Nobody buys bad shipping debts and wonder what’s gone happen. Some “experts’ ” statements for buying or selling are pure nonsense as all serious players keep their cards close to their chest! Expect very soon many nasty developments which will make the Hanjin saga look like a kindergarten…
On the Geopolitical front the MIGRANTS issue is advancing further and it is about time some moron politicians from central Europe stop their silly statements about and how and where the MIGRANTS should be blocked – I am referring to Sebastian Kurz, Austrian’s baby faced Foreign Minister for his statement vis-à-vis the Lesvos island in Greece and Lampedusa in Italy MIGRANTS and the general context and practice to be followed; shameful statement by an immature person ridiculing his country and the ethics of the European Union!
Secrecy always hides sins and dirty events and projections coupled with many manipulations; we are referring to the passing away of Uzbekistan’s president Islam Karimov. Wonder why the Turks made the first statement and then same was obviously announced by Samarkand… and reconfirmed by Putin’s condolences…
Talking about the Turks lets warn the international public of what is to come following the Turkish invasion in Syria; the more they stay the more the world will go – soon, on fire; just remember this. The USA must totally change its policy towards Turkey, the real cause of the mess in the region and even send troops in Turkey, otherwise no one in the future will take the Americans serious about their foreign policy. Turkey is blackmailing every nation; this is where the Turks excel for nearly a millennium. See their attitude and pathetic response to the MIGRANTS issue. Acid diplomacy is what Turkey and Erdogan will only understand. We all know how perplexed geopolitics are, but we cannot succumb to any blackmail whatsoever. Turkey is bullying one way or another all its neighbors and its politicians now under a hard core Islam can become very dangerous. Its public also turns to hard core Islam. We have witnessed this following some exchanges we had with many Turks “tourists” and others on the Greek Island of Chios this summer! Turkey continues to fly its jets violating Greece’s and conversely Europe’s Air Space. One day a major disaster might happen and the Greeks worldwide will respond appropriately on a global scale! Then the European Nations will join in support to the Greeks… It will be too late though as the World War III will be on! Putin’s Russia must make or break with Turkey; these are despicable deals between Russia and Turkey with the South Stream pipeline and other issues including nuclear energy factories and plants. The USA must intervene and get the message across to Erdogan and his likes… Time will tell of how correct info we are offering to our international viewers in an effort to save the shipping industry from a major disaster from the conflagration the Eastern Med!
BREXIT continues to bother all in the United Kingdom and we have “enjoyed” Tony Blair’s statements that the UK should remain in the EU and things have to change for the BREMAIN front! Mrs. May the current PM must continue her efforts to get rid of the Brussels bureaucrats and lead her nation to prosperity, safety and security. Her slogan Brexit means Brexit should be everywhere! The MIGRANTS policy of course triggered the empathy of the British public to vote for an exodus. See how the MIGRANTS issue is being tackled by every single European Nation.-
In Greece the coalition Government sooner or later will lose control; they have proved too little and immature to tackle appropriately Greece’s colossal problems. We are watching with dismay the result from the TV channel auction but interestingly two shipping names are among the winners! Wonder if there is somebody with guts to trigger GREXIT!
Spain is in a mess too as Mariano Rajoy cannot form a government; back to the electorate?
In the USA the two contesters, the media and statements flying around create a bad impression for both Mrs. Clinton – and her handling of the famous email accounts, Mr. Trump is creating more trouble before the 8th of November playing against his own interests! Some pools give him one centum ahead of Mrs. Clinton… We shall see the end result, but hold your breath…
G20 in China’s Hangzhou having as its theme “Towards an Innovative, Invigorated, Interconnected and Inclusive World Economy” concerns all of us who really believe in free trade and proper globalisation. We eagerly await this event where the world leader supposedly will discuss major other issues affecting all of us the 7.5 billion on Planet Ocean. Putin’s peace plan on Syria will be eagerly welcomed as well as the West’s response… Curbing Turkish appetite as Turks want to entertain Erdogan’s on purpose coup…and do something more than silly in the region….The Environment too must be tackle, particularly after China ratifies the Paris Climate Agreement. The Shipbuilding and shipfinance industries must also be discussed; let’s see who can raise his voice!
An update will follow soon.
Have a nice weekend….