Home MarketsChartering Dry Market enjoys steadiness but Wets bottom out… Beware of Geopolitics and brace for Covid’s effects

Dry Market enjoys steadiness but Wets bottom out… Beware of Geopolitics and brace for Covid’s effects

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Dry Market enjoys steadiness but Wets bottom out… Beware of Geopolitics and brace for Covid’s effects

John Faraclas

The BDI (Baltic Dry Index) ended up 19 points earlier on today and now stands at 3,300; on a weekly basis same was up 15 points – from 3,285 on 2 July. Geopolitics and Coronavirus per our title are only for strong nerves; once again, b r a c e. John Faraclas’ daily and weekly recaps:

The Capes, being once again the driving force, gained 86 points surpassing the 3,700 points threshold and now stand at 3,735.  On a weekly basis same were up 225 points – up from last Friday’s 3,510…

The Panamaxes’ BPI retain the 4,100 plus points threshold and now stand at 4,101 – minus 27. On a weekly basis the BPI lost 168 points – down from 4,269… Noticeable the loss of the 4,200 points threshold…

Losses for the Supras’ BSI which was doing very well with excellent t /c rates in analogy with all other sizes. At 2,891 – minus eight points since yesterday, same feels safe. The weekly losses amounted to 44 points – from 2,935 (everybody believed that the 3,000 points was possible, but the loss of the 2,900 points threshold is now a fact…)

Modesty and steadiness for the Handies’ BHSI. Plus 14 points today and now the Handies read 1,651 points surpassing the 1,600 points threshold. Nearly 100 points up,  to be precise 96 on a weekly basis – from 1,555 points last week (02/07).

All in all still a more than buoyant Dry Market, a bit unusual for the time of the year; cross your fingers!

The Wets remain grounded and this low levels might create unwanted situations; the last published BDTI (Dirties) and BCTI (Cleans) stood at 586 and 445 respectively– minus two points for both. On a weekly basis the Dirties lost four points (from 590) and the Cleans surprise surprise were up one!  CAUTION and only CAUTION should be observed.

On the Ship Sales and Purchase front, still a good time to proceed with new technology in all aspects newbuildings of any type; ecological issues and further economical aspects dictates that owners must proceed.

The WTI was up US$ 1.64 since yesterday and now reads US$  74.56. On a weekly basis the WTI was down 60 cents – from US$ 75.16 on 2 July and that is pleasing! We recommend ULTRA CAUTION and insist, one way or another, that the maximum affordable WTI price, as we have numerous times stated, to be US$ 39.99; end of the story.-

The Geopolitical events which took place all over Planet Ocean this week, coupled with the worse ever Recession already create chaos. The G20 failed to address important issues and will for sure proceed to put in place a minimum global corporate tax rate of 15% minimum.

MIGRANTS  still remains the most important issue on a global scale and with the developments in Afghanistan, Ethiopia and elsewhere – I mean the day to day events all over the main spots were over the last twenty years we had issues with MIGRANTS (Venezuela, Colombia, Central America / Mexico, Sub Sahara, Med and Middle East, Calais) things can go even worse. There isn’t just a coherent and just policy in force, there is only hype! Time to end this social time-bomb, which some, like Erdogan Turks use as a blackmail to create major chaos in Europe – not just within the EU… but beyond to serve other purposes, mainly religious ones. Destroying social cohesion is their premeditated plan. CAUTION! We reiterate the view, the only pragmatic one, that only a Naval Blockade with a Mandate and Rules of Engagement can deter the flow of Migrants. You need both the political will as well as the Military might. End of the story!

The faulty line from Gib to Afghanistan and from the Caucuses to the Horn of Africa with nearly ten hot spots will continue to give tremors and tsunamis.

The entire North Africa from Morocco to Syria and the wider Middle East region which includes unsettled Libya, The Balkans – in its entirety, Ukraine, Armenia and Azerbaijan as well as Cyprus, Greece and Turkey might soon be on fire unless just solutions are in place…

The European Union still in a mess as vested interests directs some nations in supporting others and non- EU members too just for the money for armaments and big construction projects… That might lead to despicable events whilst Putin’s Russia is closely watching…

BREXIT continues its course shaking a lot of issues… The United Kingdom will always find was to defend its people in business and international shipping and trading. Meantime, billions will watch at Wembley Stadium, the Temple of Football, the final between the founders of the game, England against the super Italian team…

At the other side of the Atlantic, president Joe Biden does his best to unite further Americans following January’s Capitol events as well as lead the USA in its course as THE Superpower and takes on Russia and China simultaneously.

What an atrocity that was with the assassination of Haiti’s president Jovenel Moïse. We eagerly await and see what and why this happened.

Central and South Latin America continues its messy ideological and financial path. Wonder its destiny…

Africa with the recent former president Zuma action to give himself up following his life and style despicable actions might cause mess there… CAUTION.

Most of Africa’s regimes are in trouble and corruption is the name of the game – that applies to a lesser extend all over Planet Ocean…

In Ethiopia PM Abiy Ahmed, a Nobel Prize Winner looks and he might get an overwhelming majority; let’s see how he handles Tigray…

In Egypt and in particular the Suez Canal Authority made a deal with the ”Ever Giver”s shipowners and other interested parties. Too many issues surfaced worth studying but also avoiding. Nobody is stupid, you dead well know what I mean…

In The Pacific Basin and in South China Sea, China flexes its muscles so does Joe Biden’s America whilst Japan stands by having also vested interests, global ones too…

Mind Hong Kong too; the small but lively demo witnessed in London on Thursday the 1st of July says it all.

In the Subcontinent now: will Modi’s reshuffle save the day in India…?

In Japan, where all eyes are focused because of this enigmatic Olympic Games, the stress is evident. We wish the best outcome… :Let the Olympic Ideal prevail…

Some good shipping business news; George Prokopiou’s interests took over the Hellenic Shipyards, Skaramanga Yard, one of the biggest in the world. We wish George Prokopiou and his team wholeheartedly every success!

Will Ashley Barty beat Karolina Pliskova in Wimbledon’s final?  And what do you think: Djokovic or Berrettini in the Mens final?

The Coronavirus anathema, as we have named same from the right beginning, spreads uncontrollable and still we are in uncharted waters. Lack of discipline by the public and lack of responsibility by the political establishment. One major question: who will take responsibility for what is et to come, eh???

Have a nice evening as well as weekend and 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 (three hundred) trillion… 

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Uploaded 23:05 BST

Updated 23:50 BST

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