Home EnergyAlternative Sources of Energy Dry Markets firm; Wets falling. Geopolitics getting worse and COVID-19 more than messy

Dry Markets firm; Wets falling. Geopolitics getting worse and COVID-19 more than messy

John Faraclas

The BDI (Baltic Dry Index) ended up 62 points since yesterday and now stands at 2,385. A more than  a nice welcome of 300 points plus since last Friday the 9th of April when the BDI stood at 2,085 points. Enigmatic Wets fell slowly …with eyebrows now fully raised. Geopolitics and Coronavirus: a big surprise given the worsening of events and messy developments. John Faraclas’ daily and weekly recaps:

It couldn’t’ be better; what a Dry euphoria, which leads to: do not complain! With Capes and Panamaxes gaining enough to bring hefty capital gains, let us hope that some good period  t/c’s were fixed.

The Capes’ BCI was up 56 points since yesterday and now reads 3,439 points; on a weekly basis, same rose 556 points surpassing the 2,900 to 3,000 points thresholds – from 2,883 last Friday; excellent!

The Panamaxes’ BPI gained 113 points since yesterday and now stand at 2,347 points with the weekly gains being 344 points – up from 2,003! The 2,100 to 2,300 point thresholds conquered!

These two sizes were the driving force and Thursday, yesterday, saw a 232 and 217 points rise respectively since our midweek report… That’s what I call rich-pickings!

The Supras gained 38 points with the BSI at 1,849; the weekly gains were 69 points from last week surpassing also the 1,800 point threshold… (up from 1,780).

A bit of an odd situ with the Handies’ BHSI; seven points plus brought this index above the 1,000 points (at 1,006) again as yesterday we witnessed a loss of five points sending alarms on 999… The weekly result was 43 points down – from 1,049… This is our first CAUTION!

So, on in all a good and promising market; blessed those who managed to fix on period!

On the antipode the falling Wets; the last published BDTI (Dirties) and BCTI (Cleans) stood at 605 – down three and 539 – down 18 points respectively. On a weekly basis the Dirties were down 41 points – from 646 and 26 – from 567 respectively from 09/04… Tough days ahead…

The WTI ended down a bit – following the US$ 63.46 yesterday (15/04) to US4 63.13, that’s 33 cents down; the weekly though difference was US$ 3.81 (from US$ 59.32 on 09/04). Ultra CAUTION should be observed as we are heading for a crash… A crash of different proportions and meaning as whatever is above the US$ 40 is more than dangerous and catastrophic for the 7.7 inhabitants on Planet Ocean…

The Ships Sales and Purchase Market offers unique opportunities for those with vision and determination to continue as Environmental issues cannot be afforded by all as well as the new pattern of Shipping diminishes the number of owners – its over: It will be Shipping for the very few… Did I hear you say shipfinance? Eh… Difficult days lie ahead… Some National Fleets and G7 offsprings will cause an upheaval in the Markets… Alternative sources of Energy as well as geopolitical games – now in the cards… will change the lot… Hope you have well construed contingency plans in place… One thing we have to clear out: when we say Shipping for the very few, this doesn’t mean you have to be  big to be beautiful. Capability and Risk Strategy is the name of the game. Do you understand and know what animals are really thinking? One MUST be above all Smart in Shipping; like these clever creatures, the animals: their brains, the brains of the Smartest animals seem to work remarkably like our own. All in all an issue of intelligence, our general intelligence is thought to give us our unique flexibility of thinking…

The Geopolitical front which we described in our midweek recap on 14 April continues to worsen everywhere and on every point we raised:

MIGRANTS, still on top…

Mind the Turkish megalomania and president Erdogan’s behavior. One day he will be floored down as well as his backers. Turkish finances might sink many European Banks and Institutions. Either he makes (Peace) or Breaks (vanishes).  CAUTION. Armenia, Greece, Cyprus, Syria, Iraq and many other countries will lose their temper. The EU and NATO, the more they delay, the bigger the problems to rectify in yet a major adventure with Turkey and its despicable backers. It’s about time USA president Joe Biden gives an end to this uncertainty damaging the EU and NATO’s South Eastern flank…

The Balkans still with many issues…

The EU follows suite – dozens of issues unsolved… How can the EU and Eurozone return to recovery? Mind the EU’s unemployment…

BREXIT still making freak waves… The Northern Ireland issue MUST be solved…

Ukraine and Russia still at loggerheads… The expected two US warships did not enter the Black Sea. Sanctions leading to diplomats being expelled on a tit-for-tat will continue… We understand two UK RN warships might make their presence; we shall see… A very delicate situ for strong nerves and a surprise outcome…

Nothing changed at the other side of the Atlantic – North or South. In the north, Biden’s Administration is on a race against time… wonder on his decision to leave Afghanistan… Extensions can do, but above all a Peace accord within Afghanistan as well as one with the USA in our view is necessary. In the south Brazil seeks One billion Dollars for the preservation of the Amazon rainforest…

Mind Iran as things might turn sour in the entire Middle East…

Mind Israel too, as further retaliations are on the pipeline…

In Africa / Middle East and in particular in Egypt’s Suez Canal, the “Ever Given” incident and the One billion US Dollars claim by Suez Canal Authority and who pays same might lead in many and strange situations for the mega-boxships trade.

Far East and in particular South China Sea and the issues with Taiwan remain… China MUST think twice every single step to the top… For the time being, Chinese aspirations = a midsummer night’s dream… Uncle Sam is much alive and kicking…

On the Coronavirus’ anathema front: Pharmaceutical companies MUST get their act together and in tandem with WHO to proceed with a common Vaccine – a Convergence one so to speak Vaccine for all… All the rest is dirty business and politics against human life; end of the story.

On another tone and note now:

Following the final good bye of iconic and unique Chian / Greek shipowner John A. Angelikoussis, we had  Prince Philip’s, the Duke of Edinburgh final good bye earlier on today at Windsor, as well as the charismatic leader of IMIF, Jim Davis in London and Leonidas P. Kolakis of Diana Shipping in Athens. Blessed!

Coming up on Monday 19 April, we have the 20th NAVIGATOR- The shipping Decision Makers Forum, a virtual Conference; we wish the Bezantakos family every success for their 30th Anniversary (1991-2021) too.

Have a nice evening and weekend and do 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 over US$ 300 (threehundred) trillion…

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