John Faraclas
The BDI (Baltic Dry Index) fell another 26 points earlier on today and now stands at 942; the Geopolitics continue to shake the Globe to its foundations and expect a …tsunami, a business so to speak tsunami to strike soon. John Faraclas’ daily recap:
The Capers’ BCI down 68 point to 1,138…
The Panamaxes’ BPI down too at 1,146 – minus 46 points…
The Supras’ BSI down nine, now standing at 798 points – below the 800 point-threshold…
The Handies’ BHSI still stuck at 500…
So still Dry and High and we advise ultra-CAUTION!
The Wets slightly down too… with the exemption of the Dirties… The last published BDTI (…Dirties) was up one point at 647 but the BDTI (Cleans) lost five points – now standing at 551 points!
All in all, the Markets’ uncertainty can cause more trouble given also the worse state of the Global Economy…
The WTI at US$ 48.62 which still remains under the US$ 50 mark; the safety mark for all. CAUTION as no excuse can stand for any rise above this point; it will be detrimental for all.
Boxhips, as have stressed yesterday, need very wise thinking. Globalisation without a prosperous middle class is dead; so does the entire containerships business. Throwing good money after bad when in uncharted waters, has a limit…unless you know something  definitely is going to happen…
Global Economy in a mess: All marketing slogans, particularly those between the mid-eighties to mid-nineties have spectacularly failed. Remember the “buy now pay latter”, “buy now, no interest (or zero interest)”, “buy now pay after a year…” Holiday loans, Academic loans, Housing loans, you name it! We cannot all of us be equal in terms of wealth, and that was the worse period  and way to ease the social tension and possible uprising in all societies all over Planet Ocean. Cash is king; END of the story! See where all these banking “products” lead our societies: banks have gone under, building societies too… Need more evidence: See say in Europe the Portuguese, Spanish, Irish, Italian, Cypriot and Greek bankruptcies to mention a few. All nations are bankrupt in Europe! The entire World has gone bust!  The worst of all is to bring goods from the Far East and sell them at European level high street prices minus five centum at best. What a palaver that Globalisation meant for all. Design in a European Country, made in another over in the Far East… you know the story.
All this affects shipping; it is not just the overcapacity stemming from greediness and the scam between brokers, yards and banks; add also the too many new rules and regulations and  their…. extensions… Nonsense. Too many things in a sort period of time; the result?
On the Geopolitical front now:Â
The MIGRANTS continue to be the number one issue and a new …development appeared; France’s president Macron, following his visit in Libya, plans to set up there hotspots  to process asylum seekers and stop people taking crazy risks… Hopefully these hotspots will be ready this summer. This year 110,000 Migrants cross over to Europe; 2,300 drowned or are missing… Last year 362,753 crossed over. There are nearly a million in camps on the Libyan coast hopping to get to Europe. We wonder why not all EU states convene in Brussels and have a unanimous coherent plan and use same immediately wherever same is necessary, particularly in the Turkish Anatolian Coast. remind you that we have asked for a Naval Blockade with Rule of Engagement…  Caution as we understand there more on the North African Coast – our confidants say three million and an equal more or less number in Turkey…CAUTION!
The Wars in Syria and Iraq against ISIS and others continue… Wonder if there is left an iota of humane behaviour from all combatants… Nemesis will soon be looking after you all; remember this. This is not a way to support vested supper-powers’ interests… and in return our villages, sea-side resorts,airports, train and tube stations, towns, cities – you name it, are subjected with suicidal basically Terrorism; ENOUGH!
Next door in Israel and particularly in Jerusalem things are calming down following an Israeli security reverse; caution as tensions rise and also Israel’s internal problems might erupt and elections can take place again as Naftali Bennett, education minister and rival to Benjamin Netanyahu criticised  the decision, citing that this affects Israel’s’ sovereignty… CAUTION!
Turkey must play by the international rules and stop provoking its neighbours. A good offer would be Peace on Cyprus and have its occupant army leave back for Turkey. Simultaneously to accept the Treaty of Lausanne and stop pestering Greece, a NATO and EU member State…If president Erdogan and conversely all in Turkey have a chance to ever enter the family of European Nations, this is passing through the Peace process with Greece, Cyprus and all its neighbours. The more this situation of occupation and pestering Greece and Cyprus continues  makes Turkey a pariah state and the international community should stop to give-in to Turkish aggression, provocation, blackmail and deceit, the bigger the damage… Turks must work for Peace or else!
Greece goes through a “virtual” period and when the boat gets on the rocks, wonder what the next excuse will be… What we want to avoid is Greece becoming a CTL case as we say in Shipping… Only an ARISTOS government can make it; the rest is pure nonsense. We consider that both this coalition government and the opposition are ultra-populists and they cannot deliver finding dozens of excuses when  they resume power; they cannot implement an iota. Let’s see what happens to Greece after the forthcoming German elections; some German politicians favour GREXIT…
BREXIT proceeds further and it seems all will be fine with the citizens rights both ends! 2019 is approaching though! The Grenfell Tower investigation might produce tsunamis and many will end even behind bars…
At the other side of the Atlantic, in the US, the Senate voted 98-2 to impose  sanctions against Russia, Iran and North Korea despite the White House having its own objections… Still awaiting the final on Obamacare…
Shipping might get affected from small wars which might spill over and we suggest CAUTION as things might go off-hand… Mind the Dire Straits and let us protect them from now on!!! Things will get sour… Aden, Malacca, and the Suez Canal to name but a few, MUST be adequate protected…
More news tomorrow with the weekly recap. Until then be on guard for any eventuality from Pirates and terrorists looming in the background.
