Home MarketsChartering Widen losses as the BDI@934 causes concerns; the wets balancing act…

John Faraclas

The BDI (Baltic Dry Index)  lost 15 points since yesterday and now stands at 934 thanks, once again, to the volatility of the Capers; Geopolitics continue their enigmatic course and development amid Terrorists mess. John Faraclas’ midweek recap:

The Capers’ BCI 2014 lost 52 points and now stands at 1,654 – an expected fall!

The Panamaxes’ BPI down one at 849 points – look likely for a plus figure tomorrow…

The Supras’ BSI down nine at 737 points, and

The Handies’ BHSI lost eight and now read 478 points.

The current state of the Dry Market is a concern for all; end of the story…

On the …antipode the Wets with a considerable rise over the last week… The last published BDTI (Dirties) and BCTI (Cleans) stood at 821 – that’s plus 22 and 520 – that’s plus four points respectively…

More news comes from VesselsValue following the breaking news that Scorpio Tankers is to buy the 10 LR1/2s owned by Navig8 Product Tankers, as well as take over the 17 vessels on Bare Boat Charter to Navig8, VV has put together some quick stats.

It’s interesting that Scorpio Tankers are buying now. 5 year old LR1 tanker values have been pretty flat since mid January 2017. Here is VesselsValue’s Fixed Age market value for a 5 year old LR1 vessel over the last 5 years:





Navig8 Product Tankers owned 10 of the vessels involved in this deal, a mix of LR1 and LR2 tankers. They are worth a total of 362.52 million USD today.

The other 17 involved in the deal are chartered in on bare boat from CSSC Shipping, China Merchants Bank, Bank of Communications and Ocean Yield ASA. These 17 vessels have a market value today of 661.64 million USD. Scorpio are going to take over the charter contract for these vessels, with the possibility of buying them once the charter is over. At this stage we are going to keep these vessels belonging to their owners until Scorpio buy them.

Here are the new rankings of the top 5 tanker owners before and after the 10 Navig8 Product Tanker vessels are bought by Scorpio Tankers:






The Container trade seems by the media announcements that is getting better; we strongly object this view.. Caution.

The Cruise industry, subject you know where to trade, indeed has a future, but caution should be observed. There are many business and geopolitical risks. We hope that the politicians might, even the last moment do the right thing and eradicate all dangers which affect and which might affect this sector in the future.

Given the latest atrocities in Manchester and all those during  the last three years, we need to see top of the range security, particularly in ALL public places – that includes Ports , Terminals, Airports to name but a few. You see, members of the Shipping Industry – mainly  crew members joining or ending their ship employment, travel world-wide and we are all very concerned. No excuses. We had enough!!!

Many orders in various shipyards renew the interest and the re-surge in second hand buying spree of entire fleets might cause tremors; we shall see. Meantime many listed companies results are not those the investors hoped for. We await and see what will happen at the end of this year as well as at the end of 2018 so then you can remember our hint today!!!

The WTI on the rise – as these lines are written its stands at US$ 51.57… CAUTION. We reiterate the view that any cent above the US$ 50 mark is dangerous and above all same harms the poor worldwide and might create even a social upturn…

The Geopolitical front is more than dangerous with too many issues; here we go:

The MIGRANTS still on top – we must not turn our head to the other side on an issue which develops other troubles… Thirty more MIGRANTS downed today amongst them young children after falling into the sea off the Libyan coast… SHAME!!! SHAME all over with this issue. “Wonder” WHY we cannot solve this problem in 2017!!!

The Wars in Syria and Iraq continue and we hear that Abu Musab al-Masri, the so called War  Minister of ISIS is dead according to the Syrian Army. Still a very delicate situation which has drawn in over twenty nations… Time please; we had enough from ISIS, the ground forces please here and now. It can be swiftly achieved.

Turkey continue with Erdogan’s own agenda pestering everybody in the region, particularly neighbours with whom they share common issues; but Turks will remain Turks and with Erdogan in power, expect the unexpected. Today the Turkish air-force continued with jets and helicopters to violate Greece’s airspace. As we have numerous times written: one day the Greek public’s response as one fist will be detrimental and in all fronts. We sincerely hope the USA and its president together with all NATO allies will ask Turkey to change its behaviour before is to late… More arrests in Turkey and it seems that Turkey’s EU relationship is being dismantled… ENOUGH!!!

Greece next door continues to be strangulated by the so called lenders and the time has come to end this saga. The Greek politicians have been short-sighted all along; pity. Time for change, time for real change!

BREXIT continues so does the election process with a suspension though of the campaign following the Manchester atrocities.

These atrocities in Manchester Arena as well as the consequences emanating from these despicable acts by cowards – whether acting on their own or belonging to sick, to pathetic networks of “people”, will very soon change the course of history as we had enough. Patience is a virtue, but at all costs we must saw ZERO Tolerance and draw the line; end of the story. Reading the news and the way the news are announced vis-à-vis the identity of the sick suicide bomber as well as other evidence, I guess some security forces  and services must remain put and advise the authorities of the country as well give them the appropriate and also much needed info, and not to the media! This unauthorised disclosure to the USA’s media, according to the United Kingdom’s National Police Chiefs’ Council by US intelligence officers, undermines investigations. Let’s see what Mrs. May will say tomorrow to president Trump when they meet… We must also congratulate the Police and Security Services here in the United Kingdom for acting swiftly and arresting six persons though to be involved in a network. A seventh was also mentioned but we await confirmation.

President Tramp was in Vatican today and hope he got the message from Pope Francis… Hope religion and politics can work together; who undermines whom is a very complex issue… CAUTION…

President Tramp’s visit in Europe these days come at no better time and hope he ensures Peace can be done; otherwise…. The forthcoming NATO summit has too many issues to solve. A messy World surfaces and somehow we need to converge for Peace, otherwise War will sort it out… Remember this! NATO will also become the spearhead in the fight against Islamist Terrorists!

Have a nice evening and be on guard for every eventuality from Pirates and Terrorists wherever you are!!

Uploaded 17:50 BST

Updated: 23:25 BST

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