Index are back on the market, lucky us, we’ll be able again to have a visibility on what was the value of the market ages ago… Once you have understood this, any one has to set up his own rule whether they (index) are late by 3/5/7 days and try then to remember where was the market that said day and then use your brain to try to figure out where is currently the market and where it is heading to.
For instance, after a 7 business days break, and view how the index was (relatively) strong in November/December, with pretty much no surprise, the indexes proposed today are showing a kind off correction on the handies, and like if the Capers never stop, a relatively reasonable upward on this size (+153). On the bhsi, looking into Atlantic routes, ex America are losing more than 10%, ex Skaw passero, losing something like around 5% only.
Bimco dropped a report accessible for their members, which we are, and for those of you not having access to this, in nutshell what do they say about world economy/drybulk:
- More than eight years of world economy struggling
- Still need several years of solid improvements to lift fleet utilisation rates
- 2017 world growth gdp, shipping might not be able to benefit as
- this growth is currently driven by service sectors.
- This growth is currently driven also by « developing/emerging economies which results in lower « gdp-to-trade multiplier »
- Drybulk : still oversupplied to balance the 2017 dwt deliveries, industry need to scarp 30million dwt this year
If I may add some comments
3.a. well, time for owners to consider themselves as service providers and not industrial/ logistic/ financial entities. I know I’ll have some reactions back from some readers, stating that they are already considering themselves as service providers but unfortunately they don’t get awarded for the service they provide. And yes some owners/operators are service oriented but let’s face it, more than needed are still considering themselves as financial entities only.
3.b. I quoted bimco to try to shine but I have to admit I don’t get a clue about what they’re trying to tell us. No shame to confess I guess.
- Needless to say, Bimco advise is to scrap 30million dwt in jan feb rather than in between 20/30 dec.
Promise as off tomorrow, I’ll try again to bring some info on what we see/hear/do on the chartering market.
Promise, what we do, we try to do it brightly only and when we don’t know, we ask to a little bird
Have a nice evening