Thursday, November 1, 2012

        ‘ THE FREIGHT PHYSICAL MARKET VERSUS THE PAPER MARKET

                                                 By Anastasios Maraslis
                                      S.T.I.C /President/Director

Shipping business is cyclical, with periodic overcapacity, where the freight rates reflect the supply-demand balance.

The understanding of Shipping business particularities make it necessary to work collaboratively to achieve success by transfering knowledge and 'tangible' experience on a wide variety of shipping 'areas' of common interests.

One of which, is the current prevailing freight -existing- rates available for numerous shipping routes, type of cargoes, type of vessels and sizes!

Although the current freight 'PHYSICAL MARKET' is very low, within the next 8-10 years the emerging economies will contribute an outsized share of the world GDP growth. Overall the global economy is expected to expand at a 3.6 percent annual rate over the longer term, resulting in world GDP swelling to $90 trillion by 2020! That is 40 percent larger than what it is today.

Have you planned for these developments ahead and how?

One way to plan is through STRATEGIC ALLIANCES which is required now more than ever before and the creation a functional mode which will establish and promote THE FREIGHT MARKET TRANSPARENCY which has to be our main concern before the 'PAPER MARKET' overtakes in its entirety the PHYSICAL FREIGHT MARKET and drives it to complete chaos and ruins! In which case SHIPBROKERS EXISTANCE in the market will be at great risk, threatened to be REPLACED BY 'PAPER' TRADERS' and MEGA TRADING COMPANIES.

To remain indifferent in such a threat is not the solution and any good professional has to think it seriously and act now, before is too late.

The reluctance of banks to provide capital funds, the rise of shipping debt and the sharp fall of freight rates motivated stock - money market practitioners, stock , bond and CDO's traders to use the DERIVATIVES financial instruments for taking advantage the openning/opportunity given in the ONLY LEFT HEALTHY INDUSTRY, creating a parallel 'PAPER MARKET' with the purpose to speculate and profiteering based on caused SENTIMENTS and controlling OPINIONS by spreading ambiguous and non clear information among us, using various sources, ways and means.

To make the right decisions one has to be prepared to run the extra mile and get what is required through private research and empirical evidence; otherwise he is risking failure, making wrong decisions based EFFORTLESSLY on OTHER PEOPLE OPINIONS OR BIAS.

RELYING YOUR DECISIONS POWER ON OPINIONS OR ON REPORTS ONLY (MOST OF THEM BASE ITS INFORMATION ON THE PAPER MARKET EXPECTATIONS) IS NOT PRODUCTIVE AT ALL.

-EMPIRICAL EVIDENCE is where we, here at S.T.I.C, base our work and decisions, ONLY.

-EMPIRICAL EVIDENCE FROM THE PHYSICAL FREIGHT MARKET is what we provide to our loyal clientele and close supporting associates.

-EMPIRICAL EVIDENCE is what we seek in our research and observations.

-YOUR EMPIRICAL EVIDENCE is invited to be shared with OURS and OTHERS in an  
 ASSOCIATION for complimenting and updating the NEW, INDEPENDENT and RELIABLE












 MUTUAL SOURCE OF EMPIRICAL INFORMATION - THE IDBFIA!

-THE (IDBFIA) INTERNATIONAL DRY BULK FREIGHT INDEX ASSOCIATION is not based on bias or opinions but STRICTLY on EMPIRICAL EVIDENCE (cp fixts/fixture notes/recaps) harvested DAILY, from the International spot freight market, by associated brokers,owners and charterers .

-The IDBFIA is open ONLY to its ASSOCIATED MEMBERS, AS A MUTUAL POOL OF INFORMATION.

A critical part of enhancing the future planning process of our clientele is improving their overall decision-making capabilities.

Left unchecked, subconscious biases such as excessive optimism ('dictated' mainly by false unchecked data/info, or even influenced by so called 'authorities' which usually, if not always, undermine a manager’s routine or strategic decision-making capabilities.

-We, at S.T.I.C provide our exclusive or semi exclusive clientele with a decision making analysis and a perspective on - and a way to mitigate the

impact of - the biases that are often inherent in our clients’ decision - making processes.

-S.T.I.C’s information harvesting is resulted directly from the shipping PHYSICAL ‘battlefield’ through daily hard work and high standards technology

applied by our dedicated company’s executives in THE PHYSICAL FREIGHT MARKET by analysis and strategic planning.

Please share your thoughts, ideas, empirical evidence with us to co grow the IDBFIA for YOUR ‘peace of mind’, ‘confidence of what are the prevailing rates at each time’, ‘control of your work’,‘work is more enjoyable’, ‘better budget control and profitability’, ‘save time/less hustle’, ‘being cause’ and CONTRIBUTE TO THE SHIPRBOKER'S PROFESSION SURVIVAL..

Sincerely yours,

S.T.I.C
Anastasios Maraslis
President/Director.
P.S You may recirculate, forward or print.

SHIPOWNERS TRUST INTERNATIONAL CORPORATION
                              S.T.I.C
                     Shipping & Trading
SHIP OPERATION/CHARTERING /S&P / TRADING.
 
                 www.eshipownerstrust.com

chartering@eshipownerstrust.com   (Chartering Dept.)
Operations@eshipownerstrust.com  (Operations Dept.)
Dry@eshipownerstrust.com             (S&P/TRADING Dept.)
info@eshipownerstrust.com            (General/Admin.Dept.)
consultancy@eshipownerstrust.com (Consultancy Services)