John Faraclas
The BDI (Baltic Dry Index) gained three points since yesterday – being those lost yesterday, and at 688 fights for survival. The Geopolitical front will soon produce a mega mayhem; it might be a good bye to Peace. John Faraclas’ daily report:
The Capers and the Panamaxes lost 11 and six points, with the BCI 2014 and the BPI down at 556 and 933 respectively, sending freak waves, although it seems that soon we might see, hopefully, an upwards reversal.
Supras and Handies on a plus “modus” with the BSI and BHSI at 689 (plus eight) and 382 (plus three) respectively.
The Dry Markets are more than a puzzle, they are an enigma with whatever this entails.
No funds available as they should and many might miss the opportunity to acquire extremely low price second hand and newbuilding tonnage.
The Wets on an upwards trend; the last published BDTI (Dirties) and BCTI (Cleans) stood at 862 (plus 11) and 586 (plus nine) respectively.
The Container trade still in a mess.
Demolition still needs to accelerate.
Bankruptcies of both shipping companies and …banks the name of the game…
The Dry Market (BDI) needs a minimum of 2,000 (two thousand) points to make sense and the Wet one an extra of 1,000 (one thousand) for the Dirties and the Cleans to ensure continuity and break-even. So, until we see these levels, ensure you can continue to be around.
The price of WTI went slightly below the US$ 53 mark and that’s a good sign for the reasons explained in past and recent assessment. Think of the poor; they might revolt and then you tell me what’s next… For sure it will end up the day between US$ 52,99 and US$ 53,99…
Shipping looks definitely becoming an industry for the very very very few. For a start too many regulations, too much political interference with the EU trying for example as we witness lately to intervene to the IMO’s work, bigger companies trying to “outperform” and strike-out the small ones, luck of funds, Geopolitical dangers and high costs making shipping a very unmanageable adventure. Obviously the strategists of this doom will see, when the time comes, how spectacularly they have failed and the damage inflicted upon Planet Ocean’s consumers. It will be though too late as the damage to reverse the tide will be costly and difficult – see even the national fleets effect….
Following on from recent news reports, VesselsValue advises that Hanjin is going to be liquidated this Friday; viewers can see the below statistics and understand a bit of what is going on with the Hanjin saga.
The majority of their fleet is still listed on VesselsValue as being owned by them. Much of the sales activity has been down to financiers selling off the vessels as they tended to be leased to Hanjin. 9 vessels are currently for sale (7 bulkers and 2 boxships). VesselsValue expects the others to go following the liquidation.
Hanjin Fleet:
| Ship Type | Number of Vessels | Total Capacity | Total Value USDm |
| DWT | |||
| BULKER | 12 | 1,499,600 | $ 225 |
| SMALL DRY | 1 | 10,400 | $ 6 |
| TEU | |||
| CONTAINER | 29 | 230,168 | $ 755 |
| Grand Total | 42 | $ 986 |
Hanjin Historical Values:
| Year | Number of Vessels | Total Value USDm |
| 2017 | 42 | $ 986 |
| 2016 | 60 | $ 2,029 |
| 2015 | 66 | $ 2,604 |
| 2014 | 104 | $ 3,770 |
| Buyers of Hanjin Vessels | |||
| Company | Number of Vessels | Purchase Value USDm | |
| HSH Nordbank | 1 | $ 74 | |
| KMTC | 4 | $ 22 | |
| Seaspan Corporation | 4 | $ 22 | |
| Capital Maritime and Trading | 1 | $ 19 | |
| Chartworld Shipping | 1 | $ 13 | |
| Golden Union | 1 | $ 13 | |
|
1 | N/A | |
| Grand Total | 13 | 164 | |
| *Sales made since October 2016 | |||
| Hanjin Demo Sales | |||
| Ship Type | Number of Vessels | Average Age | |
| SUPRAMAX | 2 | 19 | |
| PANAMAX CONT | 1 | 19 | |
| POST PANAMAX CONT | 1 | 19 | |
| Grand Total | 4 | ||
| *Sales made since October 2016 | |||
The Geopolitical front gets worse:
The MIGRANTS issue is far worse than yesterday and the day before yesterday and from last week and month and last year to put you in the context of reality of what is going on! Expect the unexpected. Politicians and Diplomats have created a very complicated state… Shame as more and more pour in Europe from the east and south emanating from the Turkish Anatolian Coast and Northern Africa…!
The Wars in Syria and Iraq with the ISIS and other functions still at large and the resurfacing of the Israel – Palestinian saga, with a new order by president Trump following Benjamin Netanyahu’s visit today at the White House will make the entire region go up in flames… caution as the Suez Canal needs to be continuously used to serve Europe and the Far East, otherwise hostilities and terrorists will make it close – at best a dangerous dire strait…
Turkey gets in more mess from within and external issues. Caution…
Greece next door ALSO in a very difficult state of affairs from different though reasons. Any mess in Greece from any kind whatsoever will have incalculable repercussions for all.
BREXIT continues to shake everything on Planet Ocean and try to see this time in two years-time where things would be…
It is Europe who has the problem; Germany, and the German-French …axis, failed to provide the much needed business environment and this affects the third of mainland’s Europe nation, Italy! The rest I am sure you can imagine.
The elections in Germany and France – possibly in Italy, as well as in other unstable European Union countries will be very crucial.
Putin’s Russia continues its own agenda and needs to be closely watched. Indeed though this is a new Russia despite carrying the Soviet Union’s super-power legacy. We shall see in the coming three months what to expect in Crimea, Eastern Ukraine, former Eastern Europe and Middle East…
At the other side of the Atlantic president Trump has another agenda all together as well as a different modus operandi… Even for the NATO Alliance things might get sour as all nations MUST proportionally contribute to meet the target of 2 (two) centum of their GDP… The Dow Jones Industrial Average surpassed the 20,611 points setting another record, the FTSE too at 7,302 was feeling comfortable and the DAX slightly up at 11,793 – we shall see though what happens next, as this stock market euphoria doesn’t, repeat doesn’t correlates with the financial reality of the masses who get poorer; sorry, but this is the state of affairs…
In the Far East a very muddy situation prevails: China trying for a come-back, but can the Chinese continue or we might see the bubble burst? You see the power of numbers is one thing, reality yet, coupled with domestics yet another.
Japan is closely watching with Abe in the helm…
North Korea’s days are numbered as I guess the new USA administration will saw zero tolerance… Meantime whatever happen to Kim Jong-nam? A very delicate case…
In India all eyes and minds are there to verify if the rupee can trigger and election… Did I hear you say demonetisation?
In Africa, Gambia returns to the Commonwealth! The Democratic Republic of Congo cannot afford an election as planed in 2017 – costs are too high… and now what? Eh!
In South America and in particular down in Brazil, a judge lifted President Temer’s mobile phone hacking ban; let’s see what’s next…
In Australia kangaroo culling divides the nation…
On another note today, two major events:
The Greek Press Attache Alexis Georgiades introducing Panagiotis Kourouplis
In London, the recently appointed Greek shipping minister Panagiotis Kourouplis met the Greek Shipping Co-operation Committee for lunch in a very friendly atmosphere; a very positive communication. He also visited the Secretary-General of the IMO Kitack Lim and participated in the Vassilopitta cutting at the Greek Ambassador’s residence. In the evening he spoke to the London based Greek journalists and media at the Park Plaza Riverbank Hotel on Albert Embankment overlooking Father Thames. His ten-point plan covering the entire maritime spectrum was well presented and we managed to get the first question on “Given your joyful statement during the past fortnight following the construction of ferry boats/ro/ros in Greece for export, isn’t time to revive the shipbuilding industry and enhance also maritime education and training by building a training ship given that Greece is the number one nation on Planet Ocean capacity-wise, yet it lacks behind on the field and needs more and well trained seafarers”. The minister positively responded/ replied (on a free translation): “I listen carefully what you tell me; I don’t believe that I am the only one who holds the unique truth. I listen carefully all those I confer and discuss with so that I enhance my knowledge. I am sincerely telling you that we have raised the alarm on the issue of Maritime Education. This is an issue which we must tackle immediately and with ultra caution”. We will recapitulate soon his entire visit ends and report back. A great day for all in the Administrative capital of Shipping!
Prof. Grammenos at the podium after receiving Capital Link’s Greek Shipping Leadership Award
Down south in Greece the 8th Annual Capital Link Greek Shipping Forum at Divani Caravel Hotel in central Athens, not only was a timely event given the prolonged shipping crisis, but a moment to applaud Prof. Costas Th. Grammenos’ contribution to Shipping and Finance Education and Training. Who wasn’t there! On all counts from our …planted confidants, it was a great event nicely performed by the speakers and moderators, as well as from the Bornozis’ team. We will revert soon with a write up and of course all the deliberations from this event.
That’s all for today, have a nice evening and be on guard for every eventuality!
