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Home MarketsChartering What a week* that was with the Markets, Geopolitics and Coronavirus…

What a week* that was with the Markets, Geopolitics and Coronavirus…

by admin

John Faraclas

What a week* that was with the Markets, Geopolitics and Coronavirus…

Lack of steam is this week’s market is the main characteristic for both the Dry and Wet Markets; Geopolitics seem on hold but this is the biggest bluff; Coronavirus raises the stakes for what is yet to come. John Faraclas’ daily and weekly recaps:

The BDI was down eight points since yesterday and now stands at 616 points; on a weekly basis same was up 60 points – from 556 last week (27/3)…

The Capes, the most volatile of all sizes, continued to rise with the BCI up 51 points and standing at 319 points. The weekly gains more than exceptional, 322 plus points from last week’s minus 97 points (27/3)…

The Panamaxes – our most favourable, size lost five points and now the BPI reads 797 points; the weekly gains though were more than welcome:  68 points up from last week’s 729 closing!

Falling Supras and Handies give another picture; the BSI fell below the 500 point threshold and now reads 495 – minus 18!!! On a weekly basis the BSI was down 146 points – from 641 (27/3)… The BHSI  lost ten points and now stands and at 340; the weekly losses where …considerable, minus 61 points and loss of the 400 points threshold (from 401 points on 27/3)!!!

Instability for the Wets; the last published BDTI (Dirties) and BCTI (Cleans) stood at 1,383 points – down 19 since yesterday but 151 points plus since last week’s 1,230 points. The Cleans  lost 12 points and now the BCI stands at 874 points. On a weekly basis though the BCTI was up 19 points (from 855 last Friday the 27th of March). The VLCCs and ULCCs make a fortune  every single day… It seems also that president Trump’s good offices worked and now Saudis and Russians abandon their oil price and production war…

The WTI ended up at US$28.34 which is US$ 3.02 higher than yesterday and US$ 6.83 higher from last week’s closing at US$21.51 (27/3). CAUTION as with these low prices 7.7 billion people benefit on Planet Ocean and improve/further their lives… whilst nobody looses. True? Eh!!!,

We are already in a Recession, a Recession that will engulf everything on Planet Ocean in a multiple of ways… Just wait and see.

The Geopolitical situation gets worse but due to the Coronavirus mess everything almost disappears from the news by the Media; SHAME!!!! All issues from the MIGRANTS to North Koreas’ ballistic tests remains; everything in the messy EU and BREXIT is still here looming in the background… Turkey’s Erdogan continues to violate Greece’s and EU’s airspace and territorial waters whilst German lead Brussels keep on purpose a blind eye… What a shame!!!!!

Coronavirus figures although NOT reliable – as we believe that actual figures are by far higher, still cause panic and fear given that we navigate in uncharted waters. Some nations behaviour is inhumane in hiding the reality, not just the truth!!! The leaders of any nation hiding the Coronavirus cases, deaths etc etc should one day sit on the dock!!!!

In my humble view the main issue remains if the virus remains genetically speaking stable, i.e. no new mutated strains which could be more toxic. If the strain changes then the vacine produced will not be efficient. Now, how come some infected people have mild symptoms – like The Prince of Wales, whilst others die? We do not have yet a clear picture for this hence all this remains an enigma… Be patient, discipline and adaptable to this “norm”!!!!

We also hear and read of some legal cases and lawsuits emanating from the USA against China worth a few trillions of dollars… Let’s see the …outcome…

Now let me remind you a bit on Ethics and individual conduct and how Canon Frederick Lewis Donaldson summarised the seven deadly sins of our modern society:

  • Policies without principles
  • Wealth without work
  • Pleasure without conscience
  • Industry without morality
  • Knowledge without character
  • Science without humanity, and
  • Worship without sacrifice

Now you try to interpret all seven above with the current life we live in and the Coronavirus mess that some clever dicks introduced.., YES introduced!!!

We praise all medical staff in their effort to help us survive; we also praise all seafarers and all in the transport/logistics arena for keeping the supply chain alive. A big THANK you to all those who in any way help unsolicited in kind and money in the fight against this beast, CORONAVIRUS!!! The support of all in the International Shipping Cluster is second to none – see in particular what Greece’s Shipowners deliver!!!

More news to come; have a nice evening and weekend and continue to remain on guard from actions emanating from Pirates, Terrorists, Criminals and Business Hooligans whatsoever wherever you are on Planet Ocean. Keep the proper medical advice in the fight against Coronavirus!

*…and it’s only the beginning of a long haul flight into the “unknown”

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1 comment

Yannis Voudoris April 10, 2020 - 5:21 AM

Dear Mr Faraclas
As usual, you managed to depict accurately (without being restrained by some kind of political correctness) the reality. When I was junior, you taught me very well that the volatility of freight rates is due to either structural failures of the shipping markets (see: oversupply of ships) and/or to the correlation with the actual global economy (cyclicality). Now this collapse is due to exogenous reasons, which once they disappear the economy will reboot.
Unfortunately, the Germans are pushing (for their own reasons) for this temporary situation to become permanent, by removing currency from the circle of money.

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