Shipping

Middle East Oil Tanker Shipping Rates are on an Upturn

News Analysis: The quick turn around in Tanker Shipping Rates bodes  well for this industry. For far too long, oversupply of tankers, in conjunction with decreased demand, almost sank the historically, very cyclical business. Hopefully, older vessels [15+ years of age] will be scrapped, encouraged by adequate rates, if enduring over the months. New buildings, when undertaken, will also help yards around the world [who have seen a dearth of Oil Tanker  customers recently]. This symbiosis of Industry [Shipping] to Industry [Ship Building] may eventually cascade into better times for both. 

Perhaps Non-Traditional Funding Sources will learn about the rate changes and explore Investment opportunities in Ship Construction.  

A parallel growth model is in the construction  of Liquified Natural Gas [LNG] Vessels. In fact, innovators such as ship owner, John Fredriksen, has been leading the followers where it comes to foresight  in types of New Buildings needed in General Shipping and Oil Exploration/Production Vessels.

Reference: http://tinyurl.com/lnv3fpe

Guam and Micronesia Offer Smaller Businesses Larger Opportunities

News Analysis:  Entrepreneurs that become very successful understand the concept of “Business Scale”. Small business have the financial and technical [FT] capacity to properly serve similar sized entities. If they tried to engage in large transactions, lack of proper sized FT capacities might assure their failure. As they become successful and grow, they can ‘Scale Up’ and deal with larger customers. 

Guam and Micronesia offer small to medium sized businesses, around the Pacific Basin, the opportunity to engage in commerce [that does not suffer from great commercial competition]. Guam, with a population of 160,000+/- people and Micronesia, with 106,000+/- individuals, provide a total of over a Quarter Million Potential Customers  for many types of Goods And Services! 

Existing Air Freight as well as Sea Freight capabilities, make commercial transactions viable for those seeking business expansion to those two areas.

The World Belongs to the Aggressive. It is they who Prosper.

Reference: http://tinyurl.com/kno7uyr

Greek Economy: A Caterpillar Becomes a Butterfly

News Analysis: Much as a Caterpillar devours some of itself to morph into a Butterfly, Greece did the same. The pain its citizens experienced was the worst since World War II. The underlying problem, if one studies historical events for Greece, was “The Marshall Plan”. The largesse of the program removed the incentive to self-rely [as Japan did after the War] and instead look to government for aid. This hurt Greece from the 1940’s to the present. With others doling out monies, what incentive was there for industriousness? There was rampant tax evasion by some citizens. Rather than sitting around drinking Ouzo and quoting the Philosophers of old, Greeks really needed to use their intellect and develop international level businesses. The only semblance of such an activity has been with Greek ship owners and their fleets. The hard work of: Fafalios, Goulandris, Karageorgis, Lemos, Niarchos, Onassis, and other Shipping families put the ‘Greek Stamp’ on the world.

Today, the adjustments by the Greek government are  turning the situation around in terms increased Foreign Direct Investment [by the likes of foreseeing John Alfred Paulson, and others]. Now it is up to the Greek people to forget the ‘handouts’ by the government; and instead rely on their intelligence and intrepidness for commerce to flourish in Greece.

May the wisdom of Athena be with them.

Reference: http://tinyurl.com/m97ec4w

Russian Cooperation and Trade with Greece are Increasing

News Analysis:  The very strategic location of Greece, as well as a cultural and religious affinity between the two countries, make for a win-win situation for both. Since Greece is the first European country when coming from the Levant or Northeast Africa, its location is laudable.

The vessel shipment of hydrocarbons or bulk commodities through the Mediterranean Sea to the Atlantic Ocean or through the Suez Canal is quite enticing. Since Greece has historically treated its neighbors with respect, good relations abound. The aforementioned is of great importance to Greece’s long-time friend, Russia.

Reference: http://www.itar-tass.com/en/c32/931490.html

“Poor” Greeks Spend Billions in Ships in 2013

News Analysis: One should examine critically the mass media when its reports are unidirectional about any particular subject. Quite often contrary data is disregarded in order that a “Tsunami of Catastrophe” is maintained for the gains of certain individuals who stand to profit from the entropy. In this instance, billions of dollars have been spent by Greeks who the mass media portray as destitute, in the main. There is seldom any mention of ‘wealthy Greeks’.

Reference: http://www.shippingherald.com/Default.aspx?TabId=98&ArticleID=12755

Stena Lines Sails to Korea Through Arctic

News Analysis: Ten days shorter will provide significant cost savings as well as increase vessel life. As long as the ships are regulatory approved for cold weather conditions there is less environmental threat than sailing the Southern Route. Pirates armed with rockets and machine guns could easily destroy ships near them along the Southern Route. The environment would be subject to continued threat due to the belligerence of avaricious men.

Source: http://rt.com/business/south-korea-arctic-shortcut-600/