Inviting you to read the full NY time article here, Article, in nutshell, demonstrating the broken link between trade and GDP. Despite an overall economic growth.
- Back in the 1990’s +1% in global growth = increased trading volume by 2.5%
- nowadays, +1% in global growth = increased trading volume by 0.7%
Chartering market, European is somehow cooling down, limited activity due to banking holidays (and the bridge) which occured this Monday/Tuesday and now the man power is all heading to Hamburg for traditional Eisbein event. Sparkling water shall replace the champagne in quite few office, Hamburg being a major hub for containers, which as you shall have noticed from now, is in very good shape. Quite few drybulk players are also based in this city/port, open offices, cocktails and socializing is the plan for the next 3 days.
On the handies, today’s bhsi is also cooling down, the HS3 route is showing is first session down in the last 10 days. We can believe it’s just a normal temporary correction. Interesting info seen on Bunge performance (bunge!) while this Company explaining the poor performance being due « In recent months, slow selling by farmers in Brazil and Argentina has squeezed the company’s margins in South America […] The slow selling is likely to persist through the end of the year », knowing, « the agribusiness accounted for nearly 71 percent of the company’s total net sales of $11.42 billion». When farmers will be ready, ports will get congested and ECSA will become again the hot spot.
On the shipping side, Baltic Exchange is commenting, and making assertions, on the IMO’s decision to get a greener shipping industry within 2020, which I encourage you to read also . Side effect, it may sweep away quite few ships from the sea, which is a good thing for the market, it’s probably a less exciting news for some Owners who may be left in the middle of no-where, with no money to invest in their assessts but no possibility to trade the ship being not in line with IMO’s guidance.
For those being in Hamburg, make sure the beer or sparkling water is cooled down. For those staying at their office, do not hesitate to contact us, we have our emergency fixture hotline remaining open, just for you, it’s nice, isn’t it?