Home MarketsChartering The BDI@2,170 with mess in two of Planet Ocean’s dire straits

John Faraclas

The BDI@2,170 with mess in two of Planet Ocean’s dire straits

The BDI (Baltic Dry Index) was up earlier on today 40 points standing at 2,170; the perplexed geopolitics now confirm our fears on our numerous written hints on Planet Ocean’s dire straits over the last seven years following the Gibraltar “Grace 1” incident and the continuations / further developments on …a tit for tat basis in the Straits of Hormuz with the “Stena Impero” and  “Mesdar” tankers arrests by the Iran’s Revolutionary Guards. John Faraclas’ daily and weekly recap:

The BDI’s weekly gains were …more than enough to cause a …restrained celebration – cautious as we said the other day; 430 points plus since last Friday the 12 of July when the BDI stood at 1,740 points… Now the difference between today and that as of the end of December 2013 stands at 77 points (2,247 – 2,170)… Let’s hope for better days but… Being optimistic is one thing, realists yet another having in mind the perplexed Geopolitics and the debt on Planet Ocean: US$ 250 trillion (twohundredandfiftytrilliondollars).

The Capes’ BCI was primarily the reason for this market surge; on a daily basis the BCI gained 123 points and now stands at 4,379 points. On a weekly basis we had a four-digit figure: 1,033 points hence going over and above the 4,000 point mark!!!!!

The Panamaxes followed suit with the BPI gaining 36 points and standing at 2,170 surpassing the 2,000 point threshold and on a weekly basis the BPI was up 505 points – from 1,665!

The Supras’ BSI was up 29 points at 982 and slowly slowly approaches the 1,000 threshold – let’s hope it conquers same. On a weekly basis the BSI was up 162 point from 860 (12/7)…

The Handies’ BHSI was, in comparison with all other indices, a faction up at 492 – plus six points and 44 points since last week’s 448 points…

Yes, fine a euphoria but for how long with the Velamaxes gaining… Time will tell. It was about time after nearly five and a half years to see the BDI surpassing the 2,000 points and also to be a whisker away from the 2,247 points (end of Dec 2013)… but nothing close to the 6,000 points, not to mention the midsummer night’s dream of 11,793 (20 May 2008)… a monumental record!

The Wets on a falling mode; the last published BDTI (Dirties) and BCTI (Cleans) stood at 625 – minus two  and 491 – minus ten points respectively!!! On a weekly basis the Dirties were down 27 points from 652 and the Cleans ten points – from 545…

The WTI stood at US$ 55.76, slightly up since yesterday when it stood at US$ 55.30, whilst on the 12/9 it stood above the US$ 60 at US$ 60.21! A nice fall!

The Container trade and conversely investment still a liability and as recently reported we are going to see new megaships with different bunkering means and the shit will hit the fan! We are also going to see new ports compatible with these mega-boxships! It’s a matter of time and also with better speed. Container trade, successful container trade is based on high speeds. It’s a suicide!

AND now a bit of Geopolitics:

The MIGRANTS maintain the lead in importance from all other issues put together as, with the latest events in Gibraltar and the Straits of Hormuz, things might turn sour. A war in the region this time will send to Europe over 10 (ten) million people. The Hype on the MIGRANTS must end! See our yesterday’s Geopolitical coverage etc.,  study same in depth so you get the message!

The East Med mess that Turkey and its backers creates and stir-up the region, will also destabilise not just the East Med, but beyond… It is not just the S-400 and the F-35’s; it’s more than that! Let’s see what the USA will do with the S-400’s and F-35’s sooner than latter as Turkey doesn’t understand any diplomatic or alliance (NATO) language… at all. Only show of force! ACT NOW president Trump!

Turkey with the permission of the major powers continues to bully Cyprus, Greece and Syria not to mention Iraq. The drilling incidents and the on purpose inability of the EU, NATO and the USA to postpone yet again the actual measures in stopping the Turkish violations in the EEZ of Cyprus and the behaviour of Turkey in the Aegean proves that we live still in another wold… Time though is the greatest avenger; remember this.

Worse of all these days with the 45th anniversary of the invasion of Cyprus in 1974, still the public is unaware of what really happened and why this despicable situation continues… It was the Geek Colonels regime to blame and a dozen other reasons/ excuses. NOTHING from this is valid… The great powers immediately invaded Kuwait and you all know what happened; the same in other regions. With Cyprus is different? Simitis was PM in Greece with the Imia islets saga… We hope though that one day the USA in particular wakes up and see the dangers emanating from allowing this Turkish behaviour which coupled with religion can turn things upside down!

In Greece  the government approaches the end of the programmatic statements in the Parliament – with delibareations with all opposition parties and then it will be the vote of confidence. The New Democracy must deliver and SYRIZA MUST shut up! END of the story!

Still no news from Syria where atrocities continue and Turkey threatens to invade under the pretext and “proviso” of defending its borders from the local Kurds there… Russia having the upper hand continues its president’s agenda there. Let’s see where we end up!

The tension between the UK and Iran continues and let’s see where we end up. Similarly the tension is more than crucial with the USA. Each side might strike anytime when same is necessary… CAUTION!

On Monday 22/7 we all wait to see who will be the leader of the Conservative Party in the United Kingdom but we suspect some MP’s and Ministers might resign opposing Boris Johnson’s no-deal BREXIT! Crucial times ahead for the United Kingdom, The European Union and Planet Ocean at large…

Hiccups continue in the USA with president Trump and the four – see our recap yesterday… but on another note and tone all should be settled and forgotten given that tomorrow is the 50th anniversary of the Eagle module from Apollo 11 landing on Moon’s Tranquility Base with Neil Armstrong making the historic walking there; a new era begun with the race against rival Russia ….er Soviet Union…

…and India will try this coming Monday to send in the Moon its Chandrayaan-2 following an aborted attempt a week ago. US$ 145 mio are spend and let’s see how this project goes…

China must rethink the Trade War consequences with the USA. Meantime, China’s trade via the BRI topped up US$ 617 billion

Japan closely watches on the background and ready to intervene for its financial  and commercial interests!

Have a nice evening and weekend and  remain on guard from actions emanating from Pirates, Terrorists, Criminals and any Business Hooligans whatsoever wherever you are on Planet Ocean…

Uploaded : 22:55 BST

Updated:    23:50 BST

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