Hi AllI need to clarify a few things.Traffic through the suez...

Hi All

I need to clarify a few things.

Traffic through the suez doesnt really correlate with the BDI in the way that reganbaha intimates.

The reason that suez traffic is down is mostly due to the commercial cost of transit via the suez. To send a ship through the suez will cost a shipowner approximatley usd 150,000 in charges. This is a relatively small cost when the ship is receiving usd 100,000 per day hire. When the price of hiring a ship drops to usd 5,000 per day all of a sudden 150k is a crazy amount of money, equivalent to 30 days hire.. It then becomes cheaper for the shipowner to send his vessel on a longer voyage via south africa in order to avoid this cost. This is the current situation..

The BDI is not hyper sentsative but rather a very pure market unlike many others..

Cheers
Aussie