Home MarketsChartering A “merry” pre-Festive Season Market amid despicable Geopolitics and advancement of a Coronavirus’ “offspring” detected in UK

A “merry” pre-Festive Season Market amid despicable Geopolitics and advancement of a Coronavirus’ “offspring” detected in UK…

John Faraclas

The BDI (Baltic Dry Index) ended up 24 points since yesterday and now reads 1,325 – which is 114 points higher from last week’s (11/12) – a comfortable ending given what goes around these days with the worse ever Geopolitical Environment, Recession and Coronavirus’ mess. John Faraclas’ daily and weekly pre-Festive Season’s recap:

The Capes’ BCI lead the way with an average 74 points plus; today’s 97 plus points brought the BCI to 1,802 points. On a weekly basis the BCI was up 368 points and the 1,300 to 1,800 thresholds being “conquered”…

On the antipode the Panamaxes’ BPI turning downwards; the BPI was down 31 points to 1,402; on a weekly basis the BPI was down 63 points from 1,465 points. CAUTION…

No change for the Supras’ BSI standing at 1,057 points; the weekly gains were 26 valuable points – up from 1,031…

The Handies managed to stay “firm” with the BHSI at 678 – plus two. Ten points plus the weekly gains  – up from 668 points.

All in all a “firm” Dry Market but still an uncertain environment as we might see a drop again. A good 1,000 plus points are very much needed…  but!!!!! We shall see as a reverse is on the cards; we hope NOT! (We keep an optimism but our pragmatism dictates the opposite).

The Wets once again with mixed feelings; the last published BDTI (Dirties) and BCTI (Cleans) stood at 456 – plus three and 406 – minus five points respectively. On a weekly basis the Dirties were up 25 points – from 431 and the Cleans down 19 – from 425 on 11/12. CAUTION for both…

The WTI is going out of control ending the day at US$ 49.03… 73 cents higher than yesterday and US$2.47 since last week 11/12 when same stood at US$ 46.56. A very odd situation with incalculable repercussions. A MUST to see US$35 to maximum US$40 per barrel… !

The Sales and Purchase front looks more than interesting given the Technological advancements, the Environmental needs and Financial strengths of companies as well as the big Changes in the Shipping Industries “creating” Shipping for the very very few… Add the state of the Markets and the uncertainty in oil prices with Geopolitics playing a pivotal role and see what you get. Ultra-CAUTION should be exercised particularly in a bankrupt Planet Ocean with shifting sand phenomena…

Tourism suffers and in particular Maritime tourism and Travel… The losses are incalculable… Wonder who is going to pay the damage… There is no way you can have a virtual cruise, nor a flight of fancy… The retail market is at the edge with many department stores going under…

Care must be shown for the Seafarers in all fronts…

On the Geopolitical front now:

MIGRANTS maintain the top position and will continue for the foreseeable future. Europe suffers as its politicians, led by Germany’s leader Angela Merkel, succumb to vested interest failing to condemn Turkey for masterminding in sending thousands over to Europe via Greece and its Aegean Sea Islands. This has NOTHING to do with the Syrian inferno, given the thousands flying to Turkey’s Istanbul airports from Africa and in particular from Somalia. “Migrants” as far as Afghanistan continue to come in Europe. Time for Frau Merkel and her likes to end forthwith this despicable scum! The British Channel become also another hotspot for MIGRANTS, thanks to Mrs. Merkel… Pity as thousands perish at sea during the crossings. In Libya too we have a rise with records being drawn. We reiterate the view that ONLY a Naval Blockade with a Mandate and Rules of Engagement can save the day for Europe; END OF THE STORY!

The Turkish behaviour and defiance in Central, East Med, the Balkans, and Middle East is being appropriately tackled by the current USA Administration, even on the 11th hour! Sanctions in force against companies and physical persons. Erdogan days in power looks likely to be numbered despite his German friends and others. The time will come when the Russians will also damp him… As for his pathetic attitude against Cyprus and Greece, he will soon get the appropriate response…

BREXIT, as we have envisaged from the very beginning in writing, will turn Planet Ocean upside down… Watch this space!

The EU remains in disarray on nearly all issues; the German presidency, which ends on 31 December 2020 wasn’t the expected one… Let us see the Portuguese what will offer until 30 June 2021 and then the Slovenes…

At the other side of the Atlantic now; in the North we eagerly await Biden’s first 100 days in the Oval Office. The USA must flex its muscles in all fronts…  Central and South Latin America still in limbo… CAUTION…

Africa has to catch up as mess rules the entire continent; Rwanda, Sudan, Ethiopia o name but a few hot spots… Expect a messy 2021… Corruption must end or Africa will sink… Add the proxy commercial and trade wars and China’s intrusion and see what is coming up!

In the Pacific basin, China’s attitude will be met with the new USA’s administration force.

Barley will rule the day in Australia’s relation with China as well as other commodities. China must conform with rules otherwise we foresee mess…

Japan is closely, as always , watching!!!

All in all: a very bleak global outlook in the dying weeks of 2020… Don’t mention the currency wars…

The Coronavirus anathema will split nations and poverty will rule… Despite the announcements of the vaccines, things aren’t rosy. Still await findings on the new virus’ strain in the United Kingdom… CAUTION!! Lockdowns will soon be the norm. Wear the MUSK! Remain Discipline – for the public and Responsible – for the politicians… In general we will go through the worse dire straits of modern mankind; you haven’t seen anything yet… AND in a bankrupt world a lot can happen… We are living in interesting times…

Have a nice evening and weekend ensuring you continue to remain on guard from actions emanating from Pirates, Terrorists, Criminals and any Business Hooligans whatsoever wherever you are on Planet Ocean.  Once again a big THANK YOU to all who really care for all humans – Doctors, Nurses, Seafarers, Dockers, Port Authorities et al during this Coronavirus disaster!! We repeat: Do please invest in Hospitals including Equipment, Doctors, Nurses and any useful means to avoid further disasters! Become more disciplined and care for the Environment too. Lastly: Education and Training for all to be able to tackle these disasters. Let us work collectively together and NOT opt for a fistful of Dollars to restart the already collapsed global economy… which is in red US$ 280 (twohundredandeighty) trillion…

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