G'dayReganbaha - youre thinking is pretty good. I am also...

G'day

Reganbaha - youre thinking is pretty good. I am also surprised by the small drop in traffic thru the suez. I would have thought it would be greater. Reasons cld be the suez authority has the ability to offer rebates to shipowners in order to help with traffic flow. So im guessing alot of that is happening. We might see charges drop significantly.

We need to remember that the Suez and the Panamaz canals have survivivred and thrived for many many years of defalted shipping prices. Both canals are fully paid off. Although the BPI is now down 94 pct we are only back to year 2000 freight levels. The shipping industy was depressed for decades prior (few cyclical excepetions). Banks didnt want to touch shipping prior to this boom. Cargo was always king. The shipowners have had there 5 years of basking in it and now we are back to slightly below the long term average. Prob needs a 50 pct rise from this low level to be back to long term prices. Which isnt a big jump. Its like FMG jumping from 2 bucks to 3 bucks for example.