The BDI@2,027: Midweek Market Blues; worrying geopolitics amid Covid’s uncertainty
The BDI (Baltic Dry Index) lost 124 points since yesterday and now reads 2,027 – a whisker away from going under the 2,000 point threshold and that’s more than a serious development… In the Geopolitical spectrum things will soon turn sour as the major superpowers begin a new race to defend their “vested” interests…aiming for a 50’s and 60’s cold war situation. The uncertainty surrounding the Coronavirus anathema coupled with spin doctoring will lead us to a point of no return. Add that we have entered a year of adjustments – as we have already branded 2022 and see what you will get. With a bankrupt world economy and a US$ 350 (threehundredandfifty) trillion debt, Planet Ocean is in danger… John Faraclas’ daily recap:
All indices – Dry and Wet are red, a red alert so to speak and looks likely this situ will continue…
The BCI (Baltic Capesize Index) lost 228 points and now stands at 2,097; caution as the volatility of this particular size has been monumental all through last year…
Not a good situation with the Panamaxes either; our most favourable size lost 150 points and now the BPI (Baltic Panamax Index) reads 2,565…
Both Supras and Handies had a double digit loss; the BSI (Baltic Supramax Index) lost 22 and now reads 1,936 points, whilst the BHSI (Baltic Handy Size Index) lost 23 points and … now floats at 1,227…
It wasn’t a good end in 2021 nor a good start for 2022 for the BDI ending on the 24th of Dec at 2,217 points (two points down from the 23 Dec 2021), and 2,285 (plus 68!!) on the 4th of January 2022 respectively. Remind you of an exceptional high BDI at 5,650 on 7 October 2021, but there wasn’t enough steam to maintain this euphoria leading a rollercoaster situ…
Lucky – so to speak, were those who managed to fix for period (12-18 months) last year; in the absence – as we have always maintained, of long period timecharters like in the 50s, 60s and 70s, the volatile market favours only the big, the very big shipping entities no matter if they are liners or tramp, listed or not. Once again we stress the fact that Shipping becomes Shipping for the very few…
The Wets too on a falling mode, even with single digit figures; the BDTI (Baltic Dirty Tanker Index) lost four points and the BCTI (Baltic Clean Tanker Index) six and now read 694 and 607 respectively… Caution should be exercised and given the Energy mess things can be messy…
The Box ships are having overall a good time in all fronts with records levels. Cross your fingers but…
The Cruise Sector lives in expectations with Covid being the stumbling block… blocking any projection.
On the Ships Sale and Purchase front we favour newbuildings with environmentally friendly propulsion and be careful with Autonomous Ships and Shipping… The time is very favourable now. Demolition a healthy business option…
The WTI is now above US$ 80 and reads US$ 82.64. This is up US$ 9.55 from the closing of 2021 – in conjunction with the BDI, as same stood at US$ 73.09 on 24 Dec 2021 and US$ 5.65 plus since the 4th of Jan 2022 – opening of the New Year; caution and remember the US$ 147 back in Spring 2008.
All in all the despicable and unprecedented rise of Energy prices will cause even change of many regimes!
Geopolitically, despite the “change of guards” in Afghanistan, the faulty line from Lisbon up to Kabul remains and will continue to give earthquakes and tsunamis – Ukraine, Kazakhstan, not to mention what the sick man of Europe …err Turkey is planning… Ultra caution should be observed. USA’s President Biden should immy intervene…
The MIGRANTS remains the number one issue all over Planet Ocean with Belarus, following Turkey’s example – over decade now, to send them over from northeast of central-north Europe to the EU via Poland… Putin and Erdogan having a good time, needless to say what has happened in 2021 in the Straits of Dover with thousands crossing over from France. This will continue for the foreseeable future. For this despicable and inhumane MIGRANTS mess one nation is to blame: Germany and its former leader Frau Merkel – we have hundred of times mention this… Thousands have died including women and children… a stigma for our 2022 society. We remind you that the only way to end this criminal act is to enforce say in the Med a Naval Blockade, with a Mandate and Rules of Engagement; end of the story. In land, reinforce the land frontiers and use whatever it takes to stop them crossing over. Issue arrest orders to for all traffickers and their backers and swiftly act accordingly.
The USA, Russia, China, The United Kingdom, France and Germany have different Safety and Security agendas. Add the Latin speaking world or the Muslim world and you will be surprised of what is yet to come… Unsettled scores in say Syria or Iraq and the Subcontinent as well as in the South China Sea area where the ignition of multiple conflicts can begin any moment… Ah! Africa… another region of mega conflicts to come… await the fate of Libya. For the time being we “leave-out” Oceania from this melee…
Trade becomes a difficult issue and following BREXIT many issues will surface…
I personally favour Regional Free Trade and not Global Free Trade… what’s your view on this?
All economic activity these days in particular is not productive… again, how do you view this perception? GDP rises but poverty gains momentum…
One has to distinguish between Corporate Economy and National Economy; once upon a time both had the same purpose; nowadays they are two distinct ones… with different interests, these interests are conflicting… Right or wrong; tell us… These trade issues will greatly affect Shipping and with the failure of COP26 expect more mess…
The Environment and its famous 2050 is far away; who lives and who dies in 2050… Once again we must clarify what we want: Alternative sources of Energy or Renewable ones…
Finally on Covid, as we have already said, we expect one billion cases in 2022… We must, as citizens remain disciplined – be vaccinated unless we have other health issues prohibiting this development and our politicians must become 101 centum responsible… Also a Mask a day, saves the Day… We nead real leaders to look after all of us and not third rated puppets… Can WISTAs change Planet Ocean?
We will revert with more Geopolitical news and on Covid in our forthcoming daily reports.
Have a nice evening 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$ 350 (three hundredandfifty) trillion…
Happy New Year yet again and remember to honour in an way you can the Seafarers who keep us alive!
