Dry Bits

The Baltic Indices remained flat yesterday with the BPI being the only real mover gaining 2.47% to 2112.

I saw in the news (MutualMar) that beginning Dec 1st 2010 the Chinese will have a policy forbidding “vicious competition” among shipping lines. They have decided that zero and negative freight have an adverse effect on the industry. Perhaps they might eventually come to similar conclusions regarding the shipbuilding industry. If they allow too many vessels to be produced nobody will make much money. Don’t hold your breath waiting on that idea.

The South African government is considering regulation of (Richards Bay) coal exports. This stems from a local electricity producer “Eshkom” complaint that the low quality SA coal is being shipped to higher paying import nations (aka India) that also utilize the low end (low calorific value) fuel, rather than sell the coal to them at a lower rate. They worry if the miners sell too much coal to higher priced bidders there won’t be enough left over for them. The scary part being this type news will become more common as supply concerns multiply. Look at the Indian Ore export ban and why the issue came about. It could quickly become a national concern as vote seeking politicians convince the masses that the Country’s “National Resources” are being exploited by foreigners.

The events unfolding in the Korea’s are paramount to all other shipping related stories today. There is no greater threat to our already beleaguered industry. We should all be praying.

Ski