It is good to see Sweden open for Seafarer’s crew changes (a major global
problem affecting shipping); the exception to the rule in EU & the world
without any restrictions due to the covid-19 lockdowns
Oil has started to edge up from the imminent Opec+ agreement on supply
cuts after the breakdown between Russia & Saudi Arabia
Shipping markets are edging up; crude oil tankers have done well (especially
the older ones which were intended for demolition) as storage of cheap crude
due to the Opec unrest and subsequent storage opportunities owners have capitalised on.
The BalticDryIndex closed at 616, up 60 points from last week.
The capesize market lifted this week, up $2,274 by the close of play
today at $5,949.
As governments put their economies into induced comas, risking jobs and
livelihoods to save lives, it is also up to them to use all fiscal
and monetary tools available to return life to normal. There will be a big price
to pay, and ultimately it will fall on the taxpayer, but in the short to medium
term we can expect almighty state intervention.
The crisis hits shipping at a time of reduced supply growth, yet again
postponing the recovery that we have been awaiting for so long.
The dry bulk sector has been buffeted by rain, wind, fire & acts of God that
have reduced vital industrial raw material supplies.
The Caixin China manufacturing PMI, covering small private manufacturers,
rose to 50.1 in March from 40.3 in February while the official manufacturing
PMI, covering large state-owned firms, jumped to 52.0 in March from 35.7 in
February. This gives us an early indication, from the place where it all started,
how quickly things may restart…
by Peter Pontikos