More losses for all Dry and Wets Indices; Geopolitics are getting more than sour and it wouldn’t surprise us to watch very soon the beginning of Planet Ocean’s destruction. John Faraclas’ midweek recap:
The BDI (Baltic Dry Index) lost another 14 points and now reads 786 sending Mayday signals – some though believe that these will begin when is goes down to the 500 level, others believe that we will soon see the positive reversal; time will tell and we hope the latter to be the case, as otherwise the shit will hit the fan…
The Capers’ BCI lost 45 points and now stands at 1,122 – wonder the consequences of this volatility during the last two months; check it out and let us know your particular view and how this correlates with valuations and shipfinance projected prospects…
The Panamaxes down 18 points and the BPI reads 933…CAUTION here too…
The Supras’ BSI was down just five points at 674 and
The Handies’ BHSI fell below the 400 point-threshold with minus seven at 395!!!!!
The Wets too followed suit with the last published BDTI (Dirties) and BCTI (Cleans) at 901 and 604, that’s minus 29 and three points respectively.
The WTI as of 23:00 GMT stands at US$ 53,34 – Caution as every single cent jeopardises the poor people’s well-being; basta!
We are concerned about the Container Trade following the many trade changes emanating from geopolitics despite the fact that there has been an increased number of cargo volume in need for transport, but… It is not just consolidation, it is not just minimisation of newbuildings to avoid overcapacity (although we strongly support double eco boxships and simple dual purpose Panamax geared con-bulkers), it is not just lower prices, it is the new division of the sector that will cause tsunamis.
LNG’s and LPG’s continue to look promising despite the current situation.
LNG as a means for bunkers also has a future and we shall see how many modern vessels might opt for conversion; infrastructure too will play a pivotal role.
Regulations and the Environment will greatly affect the Markets and it remains to be seen when the deadlines are reached, what next…
Moreover the New World Order, the Order of USA’s protectionism as well as that of BREXIT – and the consequences in the EU will immensely influence the markets!
In order to avoid any misunderstanding whatsoever with respect our views and markets projected predictions, we are above all optimistic, but more than that pragmatic avoiding wishful thinking. There is a new reality in the shipping markets and few have realised same, no matter how big or strong they are! For those of us who attended the Conference in Portsmouth in 2000 “Shipping in the next Millennium” things as they appear now are …plain sailing! We do not hold any crystal ball, but we do our utmost best to be honest in our reporting no matter how harsh reality is both in the markets and geopolitics affecting same.
In the geopolitical front things are moving faster and soon, if all trouble-regions on earth continue to be messy, it won’t be shipping business as usual; end of the story!
The MIGRANTS, as we everyday bombard you, continue to be top of the list in Planet Ocean’s problems! We are only approaching the letter D in the alphabet of forthcoming events on an A to Z basis.
The entire region from the Caucuses to the Horn of Africa and from Gibraltar to Afghanistan is in disarray. Within this region, the entire Middle Eastern problem still awaits a solution for over 100 years… Does peace has a chance there? Our interest is twofold: Firstly the passage through the Suez Canal is vital for humanity and mainly for Europe at large – indeed we can use the NSR and the Cape but that will create more wars in the region, so let’s see if the diplomats have a chance and guts or the business hooligans will opt for a major conflagration!
The region has also the remnants of the old Ottoman Empire, Turkey in other words which plays a very dubious role and this can be seen from its president’s actions. A very dangerous state of affairs there. I guess, as we numerous times have mentioned in many reports, that Turkey’s NATO and European Allies have chosen the wrong horse. Everybody needs peace in the region but the way Turkey and its president behave it will lead to World War Three!!!! Turks are new kids in the block in the Eastern Mediterranean basin– just onethousand years, and unless the abide with the rules of good neighbouring in the region, then they have to be ousted like the Persians just over 2,500 years ago; when this happened, the Aegean become the sea of development in all fronts, as well as the entire region. Read what happen, and remember: History repeats itself!
Putin’s Russia have its own agenda not just for the region we mention, but beyond. The latest flare-up in Eastern Ukraine speaks alone what designs president Putin has. Indeed as per discussions with Russian friends, he has to protect Russia’s vested interests…
In the meantime we are awaiting of the final outcome in Syria and Iraq with the shameful ISIS still at large!
Israel continues to feel uncomfortable and things might get off hand if the war continues in the region.
Greece, as we have stressed long ago, is another country to watch. Nothing works out to the extent for capitulating and change the country to the better, as the current regime is much alike the previous ones. The former ruling parties are still calling for a government of a sort of national unity or whatever but without the current prime minister. It was these two main parties, ND and PASOK who rocked the boat supported at times with coalition partners; see who’s talking now: Mrs. Gennimata…how can you propose such a thing Mrs. Gennimata? Mr. Kyriakos K. Mitsotakis, leader of the opposition is trying too, but what guarantees has to offer to the Greek people in getting out of this scam; this is not just a crisis for Greece, but a scam from Germany and Brussels AND obviously a result of bad government since 1974! People should wake up, people should know; enough hype!
Cyprus awaits its freedom to be unified, but still other nations’ vested interests come first…
BREXIT is now more than live and kicking; with an overwhelming majority of 384 (496 vs. 114) MPs backed the Government of Mrs. Theresa May to back Article 50! In two month’s time, on the 31st of March she has set the deadline for invoking Article 50 of the Lisbon Treaty. An excellent result.
BREXIT might open the appetite for others in Europe to opt for an exit; did I hear you say GREXIT? ITEXT?
The rest of European Union nations are in a major restructuring given the forthcoming elections in France, Germany, Italy, the Netherlands and others might follow; the Mighty Continent in trouble… In the Netherlands we hear that there will be a hand count of the vote as hackers loom in the background… in France Marine Le Pen and Francois Fillon are in trouble for different reasons, but they are in trouble; watch this space…as financial irregularities always backfire…
In Romania 150,000 protesters made their presence felt chanting “thieves” and making the situ for the leftist government difficult…
At the other side of the Atlantic Rex Tillerson was confirmed for becoming Secretary of State in Donald Trump’s administration. The Exxon Mobile’s former Chairman and CEO has now to prove his supremacy in this field too! Prime time for the World as his energy is much needed!
A bit north, in Canada Justin Trudeau must learn how to navigate in turbulent waters following the breaking of a pre-election promise to alter the country’s voting system; purcua?
In South America Colombian Farc is about to make the last march before demobilisation; hopefully, good news.
Next door in Venezuela financial issues are to the fore and things can get really sour for president Nicolas Maduro…
Forest fire destroys thousands of acres in Chile and many fire-fighting planes from the USA, Russia and Brazil assist in the fight to stop this catastrophe; there are unconfirmed reports for six dead there…This is the worse fires in decades…
In Africa the problems continue in Zimbabwe, South Africa, Nigeria to name but a few nations there; CAUTION!
In Asia and in particular in the Far East now where former UN Secretary-General Ban Ki-moon cut short his candidacy to become the country’s next president and try and unite South Korea following the need to replace president Park Geun-hye after an impeachment for a long running corruption scandal; pity as his ten years at the UN could work wonders. He preferred his dignity to rule the day given the malign slander he faced; time will tell though and we shall report one day the final outcome of this case!
Next door in China the question stands: whatever happened to billionaire Xiao Jianhua… The Hong Kong case sounds strange; we shall soon learn and let you know as things like this do happen there; remember the five involved back in 2015 in selling books publishing things against the Chinese regime…Anyway, things like this happen all over the world, but for the record we have to mention them. The Year of the Rooster is now in full swing! Let’s see how things develop after the celebrations. Happy New year to all our Chinese friends worldwide and to all believers all over Planet Ocean!
In India the government has promised to spent US$ 7 billion plus on a special project which will secure every single rural household for 100 days of work each year. Time for action and results, excellent! Reversing poverty a must!
That’s all for now, be on guard for every eventuality particularly from terrorists that are amongst us all over Planet Ocean; the war isn’t over, inclusive that of cyberwarfare… hackers we are after you! We are living in interesting times!