“With Rand Paul’s Exit, Has the ‘Libertarian Moment’ Died Once Again?”

You know the drill: Any time Rand Paul sneezes, libertarianism and the “Libertarian Moment” catches the Zika virus and croaks faster than a Bubble Boy touring an Ebola ward. So when the Kentucky senator pulled the plug on his presidential campaign, all sorts of Republicans, Democrats, conservatives, liberals, and even self-loathing libertarians started spiking the football like they were in the XFL.

Alas, like Abe Vigoda, the recently deceased actor who dealt with false reports of his death for the last 34 years of his life (after a premature obit once appeared in People magazine), libertarianism is constantly being written off as dead—or never having really existed in the first place. 

And so it came to pass that Washingtonian magazine called me shortly after Rand Paul’s announcement to ask, “With Rand Paul’s Exit, Has the ‘Libertarian Moment’ Died Once Again?” From the story, by Andrew Beaujon:

…the Moment got thoroughly outpolled in early contests, not unlike…Rand Paul, who dropped out of the race for the Republican presidential nomination Wednesday, an event Ian Millhiser at ThinkProgress quickly commemorated with a piece called “Rand Paul and the Libertarian Moment That Never Was” and [National Review’s] Ramesh Ponnuru marked with “There Never Was a ‘Libertarian Moment.’”…

Reached by phone, Gillespie…says the Libertarian Moment is “absolutely independent of what idiot is running for president or dogcatcher.” Poll after poll, he says, shows younger people identifying with libertarian tenets like smaller government, unhappiness with government interference into their personal or sex lives, and unfettered business growth.

“If you enjoy the choice coming through your screen via Netflix,” he says, you’re chilling to libertarian principles….

Paul veered away from classic libertarianism in the race, especially with regard to gay marriage and immigration. (Gillespie and Reason have described him as “libertarian-ish.”) “If the Republican Party wants to benefit from its small-government rhetoric,” he says, “it has to become libertarian not just in its language but in its action.” Besides Netflix and Pop-Tarts, Gillespie sees libertarianism’s biggest impact in policies like school choice and forcing government units to compete with private entities to, say, run toll roads. The sum of all that libertarian thought, he says, is a “system that delivers a Whole Foods rather than a ‘Socialist Safeway‘ in Adams Morgan.”

Read the whole thing here.

In talking with Beaujon, I stressed that libertarianism is best understood as “pre-political” and that politics is a “crippled, lagging indicator” in American life (this is one of the basic tenets of Matt Welch’s and my book, The Declaration of Independents). Virtually everything in our lives that is not either directly controlled by or heavily regulated by government has been getting better over the past 30, 40, and 50 years precisely because innovation and increased personal and economic freedom have allowed for the sorts of experimentation and decentralization of power that accords with libertarian thought. Libertarians believe in giving people more autonomy and allowing them to make more choices about everything that matters to them. To the extent that things like trade barriers have been slashed, regulatory burdens reduced, social and legal sanctions lifted on lifestyles, that’s the political dimension of the libertarian moment right there.

And remember this: The internet, which embodies libertarian values of decentralized knowledge- and power-sharing, became a mass medium only when the government got out of the way and private companies built out the backbone and infrastructure to allow it to actually be useful to all of us. How did traditional liberals and conservatives, Democrats and Republicans respond to a new way of communicating, trading, and expression? By passing as part of telecommuncations legislation the Communications Decency Act of 1996, which would have essentially governed the internet (including the World Wide Web) as if it were a broadcast TV or radio station. From Bob Dole and Newt Gingrich to Bill Clinton and Janet Reno (and Hillary Clinton, too), everyone in political power signed on to limiting the freewheeling nature that made the internet different. Luckily, the Supreme Court struck down virtually all of the CDA as an affront to free speech (something which only libertarians, actually respect independent of particular outcomes. Indeed, liberal Democrats such as Hillary Clinton unapologetically seek to restrain speech they dislike (read Matt Welch’s “Hail to the Censor” on this score) while conservative Republicans are still trotting out “The Case for Censorship” when it floats their boats.

I would have liked to see Rand Paul get more traction in the 2016 election. For all the faults I thought his campaign had (and I was never slow to voice my opinion), he was by far and away the most libertarian-ish of the crew this time around, in either party. Certainly, I look forward to him resuming his powerful role in the Senate and ushering new and different conversations than we’d be having if he had remained an opthamologist. And there’s no question that libertarianism would be moving faster into the political arena if he had maintained the early leads for the GOP nomination he had a year ago.

But for cripes sake, it’s ridiculous to be writing off the Libertarian Moment and libertarianism simply because his presidential campaign went tits up. By the end of this year alone, we’ll have legalized pot in up to a dozen more states than we do now, school-choice and public-sector pensions will have been reformed in various places according the prescriptions laid out by the Reason Foundation (the nonprofit that publishes this website), serious criminal-justice reform will have been enacted, the pushback against military interventions willhave proceeded apace, and more. And that’s just in the political arena. In our commercial and personal lives, you can bet the rent money that there will be more individualized and hyper-personalized options for all of us or, same thing, obstacles to the same will be attacked relentlessly until they fall.

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“Islam Has Always Been A Part Of America”: Obama’s First Mosque Trip In Pictures

On Wednesday, President Obama visited the Islamic Society of Baltimore in his first trip to a US mosque as commander-in-chief.

Officially, the trip was “to celebrate the contributions Muslim Americans make to [America] and reaffirm the importance of religious freedom to our way of life.” But as we said on Monday, the visit was actually designed to counter the growing backlash against Islam in the US, where GOP hopeful Donald Trump has called for a ban on all Muslims entering the country.

We also said the following about what the likely fallout would be: “You can be sure that Obama’s visit will end up in a GOP soundbite in the days and weeks ahead.”

Predictably, Trump was among the first to take a swipe at the President.

Perhaps he feels comfortable there,” Trump said on Wednesday evening, a rather transparent allusion to rumors about Obama’s faith and birthplace. “We have a lot of problems in this country,” Trump continued. “There are a lot of places he can go, and he chose a mosque.”

Yes he did, and below we bring you the pictures to prove it, images which we imagine won’t do a whole lot to change the minds of the 29% of Americans who still believe Obama is Muslim.

Allahu akbar? 

*  *  *

Here’s Obama’s full speech in which the President tells the crowd that “Islam has always been a part of America”:


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Politically Incorrect: Coen Brothers Don’t Care If Their Movie Isn’t Diverse Enough

HailDon’t expect the Coen brothers to issue any apologies for contributing to the #OscarsSoWhite phenomenon: in a recent interview, the makers of Hail, Caesar! dismissed concerns that the film features an almost entirely white cast.

Joel Coen maintained that while diversity is important, the Oscars are not important. In any case, a filmmaker’s first obligation is to tell his story the “right” way, not the politically-correct way. (Hail, Caesar! was just released, and isn’t up for any awards this year, but the Coens were nominated for penning the Bridge of Spies screenplay.) 

When The Daily Beast asked why there weren’t more minorities in Hail, Caesar!’s cast, Coen fired back with, “why would there be?”

“I don’t understand the question. No—I understand that you’re asking the question, I don’t understand where the question comes from.

“Not why people want more diversity—why they would single out a particular movie and say, ‘Why aren’t there black or Chinese or Martians in this movie? What’s going on?’ That’s the question I don’t understand. The person who asks that question has to come in the room and explain it to me.”

As filmmakers, is it important or not important to consciously factor in concerns like diversity, I asked.

“Not in the least!” Ethan [Coen] answered. “It’s important to tell the story you’re telling in the right way, which might involve black people or people of whatever heritage or ethnicity—or it might not.”

Their statements are almost shockingly honest, given that they seem likely to provoke the wrath of the social media left. The Washington Free Beacon’s Sonny Bunch comments, “That’s an incredibly blunt—and, frankly, incredibly refreshing—answer…. Anyway, I’m curious to see how these comments are received.”

In any case, while the controversy over this year’s Oscars has revolved around the assumption that the awards show isn’t representative of America’s broader diversity, Freethink Media’s Kmele Foster recently pointed out the shaky math behind that theory. As he said on Fox and Friends:

“Twenty percent of the wins in the ‘Best Actor’ category, for example, have gone to black actors. Blacks are not 20% of the population; they’re around 13% of the population… 12.4% of the nominations have gone to black actors…

I don’t doubt the sentiment here. I don’t doubt that people are concerned about this issue. I don’t doubt that you’re sincere in your concern about this issue. What I’m suggesting to you is that when I look at the actual facts here — the data — since 2000 to today, that across various categories, the fact of the matter is that blacks, relative to their percentage of the population, have been over-represented in some sense, not under-represented.

And it’s important to acknowledge that because regardless of who’s doing the nominating, it’s a ‘fair’ outcome.”

[Related: Monty Python’s John Cleese Condemns Political Correctness on Campus]

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Tonight’s Democratic Debate Between Bernie Sanders and Hillary Clinton is Really a Debate About President Obama

Tonight’s Democratic debate in New Hampshire is one of four additional contests scheduled just this week, and it will be the first to feature candidates Hillary Clinton and Bernie Sanders head to head, without Maryland Gov. Martin O’Malley on stage.

That these four officially sanctioned debates were added so late in the contest is, among other things, a recognition by Democrats that their primary race is something few predicted six months ago: a real race.

Bernie Sanders, the self-declared democratic socialist from Vermont, has outperformed almost everyone’s expectations in both support and fundraising, drawing Hillary Clinton to a virtual tie in the Iowa caucus this week after grinding down her 30-point lead. It was an impressive showing, and revealed both that Clinton is weaker than was widely assumed, and that Sanders and his message have a large audience in the Democratic party.

Hillary Clinton is still the strong favorite to win the nomination, but even still, the debates will serve as a forum to publicly hash out the future of the Democratic party.  

Clinton is running as the practical, pragmatic candidate, the status-quo incrementalist in part because that’s who she is, but in part because that’s the direction she believes that’s the direction the party should go.

Sanders, conversely, is running explicitly as a revolutionary who would pursue wholesale overhauls of everything from the tax system to health care to campaign finance.

That Sanders has been so unexpectedly successful with this message is a testament to his authenticity and charm, and his surprising effectiveness as a campaigner.

But it’s also a reminder that there remains a pervasive and widespread dissatisfaction on the left with the status quo, some of which has to do with the general state of politics and polarization in Washington, but much of which is bound up in a brewing frustration with the Obama administration.

Hillary Clinton is explicitly running as the candidate who will protect and, if politically possible, carefully build on the liberal gains made under President Obama. This is clearest when it comes to health care, where she and Sanders have been squabbling over Sanders’ support of single payer.

“We have accomplished so much already,” she said in a debate last month. “I do not to want see the Republicans repeal it, and I don’t to want see us start over again with a contentious debate. I want us to defend and build on the Affordable Care Act and improve it.”

Defend. Build on. Improve. This is the kind of language that Hillary Clinton consistently uses when talking about the Obama administration’s legislative victories. It wouldn’t be perfectly accurate to say she’s running for Obama’s third term, but it wouldn’t unfair either. The point that she’s made, explicitly and implicitly, through out the campaign is that if you like what the Obama administration has done, and want to see that work preserved and protected, Hillary Clinton is your candidate.

That so many Democrats seem disinclined to stick with her suggests their frustration with the Obama administration’s policies and approach to politics.

So tonight’s debate won’t just be a battle over the future of the Democratic party, and whether it will choose the path of Hillary Clinton and the status quo or Bernie Sanders and his revolution. It will be a debate over the merits of the present administration, and its legacy in the Democratic party’s imagination.  

Conservatives and libertarians might be confused by the progressive left’s frustration with President Obama, who is, for better or worse, one of the most successful and consequential liberal presidents in the modern era by most any measure.

But in many ways, it resembles the same sort of frustration with President Bush and congressional Republicans that boiled up on the right during President George W. Bush’s administration, erupted with the Tea Party in 2010, and continues to reverberate throughout the right in all sorts of surprising and unexpected ways. That’s something that Republicans should keep in mind in their assessments of the left, especially if they believe they might win the presidency in November. And it’s that Democrats should watch out for this season as well. Bernie Sanders and Hillary Clinton may represent Democrats’ current choices, but folks like Ted Cruz and Donald Trump may be the better illustrations of the party’s longer-term future. 

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Have Stocks Priced In A Recession? (Spolier Alert: Not Even Close)

Submitted by Lance Roberts via RealInvestmentAdvice.com,

The Fed Is Behind The Curve…Again

Over the last couple of months, I have been discussing the technical deterioration of the market that is occurring beneath the surface of the major indices. I have also suggested there is more than sufficient evidence to suggest we may be entering into a more protracted “bear market cycle.”

The caveat to this, of course, has been the potential for a renewed round of Central Bank interventions that would theoretically once again postpone the onset of such a decline. To wit:

“The top section of the chart is a basic ‘overbought / oversold’ indicator with extreme levels of ‘oversold’ conditions circled. The shaded area on the main part of the chart represents 2-standard deviations of price movement above and below the short-term moving average.”

SP500-MarketUpdate-020416

“There a couple of very important things to take away from this chart.

  • When markets begin a ‘bear market’ cycle [which is identified by a moving average crossover (red circles) combined with a MACD sell-signal (lower part of chart)], the market remains in an oversold condition for extended periods (yellow highlighted areas.)
  • More importantly, during these corrective cycles, market rallies fail to reach higher levels than the previous rally as the negative trend is reinforced.

Both of these conditions currently exist.

Could I be wrong? Absolutely.

 

This entire outlook could literally change overnight if the Federal Reserve leaps into action with a rate cut, another liquidity program or direct market intervention.”

This is just the most recent observation. I begin discussing the deterioration in the markets beginning last summer as early signs of the topping process began and I lowered portfolio model exposures to 50% of normal allocations.

However, despite the fact that interest rates have continued to trend lower, economic data and corporate profits have deteriorated, and inflationary pressures non-existent; most Fed speakers have sounded consistently hawkish and steadfast in their views of 4-rate hikes in 2016.

I have been steadfast in my claims that hiking rates given the current economic conditions is a mistake and will rapidly push the markets and economy towards a reversion. To wit:

“Looking back through history, the evidence is quite compelling that from the time the first rate hike is induced into the system, it has started the countdown to the next recession. However, the timing between the first rate hike and the next recession is dependent on the level of economic growth at that time.

 

When looking at historical time frames, one must not look at averages of all rate hikes but rather what happened when a rate hiking campaign began from similar economic growth levels. Looking back in history we can only identify TWO previous times when the Fed began tightening monetary policy when economic growth rates were at 2% or less.

 

(There is a vast difference in timing for the economy to slide into recession from 6%, 4%, and 2% annual growth rates.)”

Fed-Funds-GDP-5yr-Avg-Table-121715

“With economic growth currently running at THE LOWEST average growth rate in American history, the time frame between the first rate and next recession will not be long.”

It is now becoming quite apparent that the majority of economists, analysts, and Fed members have been quite mistaken in their assessments of the impact of global turmoil and the collapse in commodity prices on the domestic economy. (Read my previous commentary on oil and China)

From Market News: (Via ZeroHedge)

“Top Federal Reserve policymakers are leaving little doubt the financial turbulence and souring of the global economy could have significant implications for U.S. monetary policy, but they are loathe to draw too many conclusions about the appropriate path of interest rates at this juncture.

 

One thing is for certain: The tightening of financial conditions that has taken place since the Fed began raising short-term rates in mid-December is a matter of considerable concern to the Fed, New York Federal Reserve Bank President William Dudley said in an exclusive interview with MNI Tuesday.

 

But, it was supposed to signal the US economy is ‘strong enough’ to sustain a lift off and decouple from the rest of the world which is scrambling to cut rates. Guess not.

 

As MNI adds, “a weakening of the global economy accompanied by further appreciation in an already strong dollar could also have “significant consequences” for the U.S. economy, Dudley told MNI.”

 

“I can give you my own interpretation,” the committee’s vice chairman replied. “I read that as saying we’re acknowledging that things have happened in financial markets and in the flow of the economic data that may be in the process of altering the outlook for growth and the risk to the outlook for growth going forward.”

 

But it’s a little soon to draw any firm conclusions from what we’ve seen,” he cautioned.”

If history serves as any guide, with the entire flow of data from economic underpinnings, high-yield markets, commodity prices and deteriorating profits screaming for help, by the time the Fed “draws any firm conclusions” it will be far too late to make any real difference. 

Interest Rate Predictions Come To Fruition

Well, that didn’t take long.  At the beginning of this year, I wrote in the 2016 Market Outlook & Forecast the following:

“With the Federal Reserve raising interest rates on the short-end (Fed Funds), it will likely push the long-end of the curve lower as the economy begins to slow from the effects of monetary policy tightening.

 

From a purely technical perspective, rates have been in a long-term process of a tightening wedge. A breakout to the upside would suggest 10-year treasury rates would soar to 3.6% or higher, the consequence of which would be an almost immediate push of an economy growing at 2% into recession. The most likely path, given the current economic and monetary policy backdrop, will be a decline in rates toward the previous lows of 1.6-1.8%.(Inflation will also remain well below the Fed’s 2% target rate for the same reasons.)

InterestRate-Update-020416

“Of course, falling rates means the ongoing “bond bull market” will remain intact for another year. In fact, if my outlook is correct, bonds will likely be one of the best performing asset classes in the next year.”

When I wrote that missive, rates were at 2.3%. Yesterday, they touched 1.8% and intermediate and long duration bonds have been the asset class to own this year.

While rates will likely bounce in the short-term, I still suspect rates will finish this year closer to the low-end of my range.

Have Stocks Priced In A Recession?

I have read a significant amount of commentary as of late suggesting that the current decline in stocks have “priced in” the economic and earnings weakness we are currently witnessing.

Such is hardly the case.  There are two primary indicators that warrant such skepticism.

The first is valuations.

CAPE-5yrAvg-020416

The chart above is a 5-year Cyclically Adjusted Price Earnings (CAPE) ratio (data source: Dr. Robert Shiller.)  By speeding up the time frame from 10-years to 5-years, we find that valuation changes have shifted from being more coincident prior to 1970, to more leading currently. As shown, the downturn in valuations has been a leading indication of more severe market corrections particularly since the turn of the century.

The second is profits.

SP500-Ann-Pct-Chg-Earnings-020416

While still early into 2016, it already appears that earnings will post an annual decline for the second year running. Annual declines in earnings have historically been more evident during recessionary economic cycles (which only makes sense as consumption slows.)

It is not just me suggesting that risk is currently high either. Here is a note from RBC:

“Based on current valuations, the prices of most stocks don’t appear to have factored in a recession scenario, ‘hence the downside should we see a recession could be rather severe,’ RBC Capital Markets’ global equity team wrote in a research note to clients who believe the shares of most companies could still fall another 50% or more from current levels.”

Such declines have been consistent with past economic/earnings recessions as “overvaluation” reverts back to “undervaluation.”

Just some things to think about.


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Pharmabro Smirks at Congress, 16 Indicted Over Oregon Occupation, More Aid Pledged for Syrians: P.M. Links

  • Maybe he has "resting smirk face"? Has anybody considered that before judging him? Huh?Famously loathed pharmabro Martin Shkreli today was confronted by the only people in America liked less than him: members of Congress. He refused to testify at a hearing about jacking up drug prices, invoked the Fifth Amendment, smirked through the congressional ranting, and then apparently called them “imbeciles” on Twitter.
  • A grand jury has indicted 16 people for roles in the takeover and occupation of the Malheur National Wildlife Refuge in Oregon. They are accused of preventing “federal officials from performing their official duties by force, threats, and intimidation.”
  • The attorney for one of the activists charged in connection to the making of undercover videos about Planned Parenthood’s fetal tissue practices says his client will not accept a plea deal offer that would punish him with probation.
  • Guess what happened to hiring in cities where minimum wages were jacked up in 2015?
  • The bankrupt city of San Bernardino, Calif., has apparently reached an agreement with a creditor over its $50 million in pension obligation bonds, but the details have not been released.
  • Diplomats from 20 different countries around the world today pledged $10 billion to assist Syrians.

Follow us on Facebook and Twitter, and dont forget to sign up for Reasons daily updates for more content.

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LinkedIn Crashes To 18-Month Lows After Slashing Guidance

Bloodbathery.. it seems at full employment no one needs a new job… or wants to hire? LNKD is downover 20% in the after-hours following a drastic guidance cut. This crashes the stock to its lowest since July 2014

  • *LINKEDIN SEES 1Q ADJ. EPS ABOUT 55C, EST. 75C
  • *LINKEDIN SEES YR ADJ EPS $3.05 – $3.20, EST. $3.77
  • *LINKEDIN SEES 1Q REV. ABOUT $820M, EST. $867.1M

LinkedIn is providing guidance for the first quarter and full year 2016. 

Q1 2016 Guidance: Revenue is expected to be approximately $820 million. Adjusted EBITDA is expected to be approximately $190 million. Non-GAAP EPS is expected to be approximately $0.55. The company expects depreciation of approximately $85 million, amortization of approximately $48 million, and stock-based compensation of approximately $153 million. The company also expects approximately 133 million GAAP fully-diluted weighted shares and 135 million non-GAAP fully-diluted weighted shares.

 

Full Year 2016 Guidance: Revenue is expected to range between $3.6 billion and $3.65 billion. Adjusted EBITDA is expected to be approximately $950 – 975 million. Non-GAAP EPS is expected to be approximately $3.05 – $3.20. The company expects depreciation of approximately $380 million, amortization of approximately $180 million, and stock-based compensation of approximately $630 million. The company also expects approximately 135 million GAAP fully-diluted weighted shares and 137 million non-GAAP fully-diluted weighted shares.

And the result…

 

Growth is over…

 

We have a suggestion…


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The Latest Hedge Fund Casualty: Standard Pacific Capital Is Liquidating

It has been at least a week without news of a prominent hedge fund liquidating, so when moments ago Reuters reported that once prominent hedge fund Standard Pacific, which a decade ago managed over $5 billion, is the latest casualty of broken markets and has decided to shut down things once again reverted back to normal.

It was not immediately clear what the final AUM of the stock-focused hedge fund firm led by Doug Dillard and Raj Venkatesan, was but what we do know is the fund’s latest 13-F holdings listed 25 long equity names, amounting to a total of $100 million which will now be unwound.

We continue to expect many more marquee 2 and 20 collecting asset managers to call it a day in the coming weeks and months as nobody can even pretend this central bank dominated, HFT-rigged “market” makes any sense any more.


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Bonds & Bullion Best As Dollar Crashes To 4-Month Lows

European bonds are collapsing… systemic risk is rising… US Services economy "pillar" plunges… and jobs data is dismal – stocks shrugged…

 

The USD Index is down over 3% this week – the worst 4-day drop since China's devaluation in August and plunging it back to 4-month lows…

 

Perhaps this is why? PBOC is actively intervening – selling USDs to support offshore Yuan…

 

Trannies were ecstatic… but the rest of the US equity market just could not get with the program…

 

VIX spikes broke the market and sparked rallies…

 

US Financial credit risk broke out to its highest since 2013…

 

Investment Grade credit is starting to decouple from stocks…

 

Treaury yields fell once again (led by 5s to 10s) as we saw oveernifght selling (PBOC intervention) dominated by US session buying… 30Y below 2.70%

 

The Dollar was weaker today… with JPY now 3.5% stronger on the week as carry gets unwound…

 

Sold against all the majors…

 

 

Gold and Silver extended their gains…

 

Copper's gains sparked chaotic panic buying in Materials stocks…

 

As crude roller-coastered…

 

Charts: Bloomberg


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World’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever

Before this year the lowest level The Baltic Dry Index had reached was 556 in August of 1986 and the highest was in June 2008 at a stunning 11,612. Today saw the freight index hit a new milestone however, crashing through the 300 barrier for the first time ever – at 298, this is almost 50% below the previous record low.

 

Commodities obviously are saying something very different from "the market"…

And as Dana Lyons notes, of course much of the input into the BDI comes from the price of raw materials. Considering the deflationary spiral in commodities, the drop in the BDI to all-time lows shouldn’t be a shock.

However, the depths that the index is now plumbing is quite alarming and suggests trouble in the global trade picture.

 

It would also suggest perhaps that the deflationary pressure is not just a supply issue. Consider every prior drop in the Baltic Dry Index down to the 500-600 level. Each time, the index immediately jumped as if latent demand was just waiting for those lower prices. That development has not yet occurred this time around, even as prices are reaching 45% below the previous record low.

 

The Baltic Dry Index has become a trendy thing to mention in recent years when discussing global market and economic conditions. The truth is, nobody really ever knows for sure what the broader message is behind the index’s behavior. That said, this recent plunge is making it quite difficult to conceive that it means anything positive in terms of the global economy and deflationary pressures.

And finally it's not just commodities and the Baltic Dry that stalled, as gCaptain reports, one of the world’s biggest containerships is hard aground in Germany’s Elbe River leading to the port of Hamburg.

The vessel CSCL Indian Ocean ran aground Wednesday night following an apparent mechanical failure.

An attempt to refloat the ship at around noon local time was unsuccessful.

 

Germany’s Central Command for Maritime Emergencies (CCME) says it has been in touch with the ship owner and they are in the process of developing a salvage plan. A second attempt to refloat the ship is expected during high tide Thursday night.

 

An overflight of the area Thursday showed no signs of pollution. There were no injuries reported.

 

The Hong Kong-flagged ultra large container vessel (ULCV) CSCL Indian Ocean measures 399.6 meters long by 58.6 meters wide. The vessel belongs to China Shipping Container Lines, part of China Shipping Group. It is one of 5 CSCL ships with the capacity to carry a staggering 19,100 twenty foot containers.

 

The incident has caused minor impacts to ship traffic on the Elbe River.

 

CSCL Indian Ocean is part of a new breed of giant containerships designed to carry more than 18,000 TEUs and used to transport goods from Asia to northern Europe.

*  *  *

Quite an anology!!


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