Geopolitics and Markets Review 22nd August 2022:

Here are the most important things happening in the world of Geopolitics and Financial Markets:

Last week I mentioned Ukrainian ships containing grain that are bound for Africa. The Brave Commander is through Istanbul and heading towards the Mediterranean. It is en route to Djibouti, where it will arrive on 31st August. Three other bulk carriers sit in a port near Odesa, with the Maran Excellence and Maran Astronomer still sitting there from last week. Three more bulk carriers are in the port of Odesa. Their final destinations are currently unknown as they travel to Istanbul to get through the Bosporus Strait first.

Remaining with shipping, the Baltic Exchange Dry Index details the cost of shipping worldwide. During Chinese COVID lockdowns and supply chain issues, this index skyrocketed, peaking in October 2021. It has been on its way down since then and is at its lowest point since the end of 2020.

The supply chain pressure index I use also continues to drop. In the long term, I will use both of these indexes to track if globalization is impacting global trade. If costs increase and supply pressure increases, I will research further how and why this is happening.