Archive for June, 2010

Earthquake 7.5 in the Nicobar Islands

Sunday, June 13th, 2010

[To Scorpiosail Home Paqe]

A magnitude 7.5 earthquake struck under the seabed in the Nicobar islands, causing tremors that were felt a thousand kilometres away on the Indian mainland, where many were shaken awake in the dead of the night causing some to flee their homes in panic. The quake hit early Sunday morning local time, with the epicentre less than 350 nautical miles from Phuket in Thailand.


Distance from epicentre to Phuket is 350nm
Click map for larger version

Our yacht Scorpio is presently in Phuket, but fortunately hauled out high on dry land. I am in Finland myself, trying to check various sources on the Internet to determine the risk for tsunamis in the area.

The Pacific Tsunami Center in Hawaii and the Indian Ocean Information Centre have issued tsunami warnings and watches, but the alerts were later cancelled. Only a mild surge in sea levels of around 50 centimetres were expected.

This area was badly hit by the 2004 tsunami which was triggered by an earthquake off Sumatra and sent giant waves crushing across the region. 220,000 people were killed, most of them in the Indonesian province of Aceh on Sumatra. Thousands were killed also in Sri Lanka, India, Myanmar and Thailand.

The Andaman Sea witnesses frequent eartquakes caused by the meeting of the Indian tectonic plate with the Burmese micro plate along an area known as the Andaman Trench.

Bloody currency fluctuations

Friday, June 4th, 2010

[To Scorpiosail Home Page]

We haven’t been very lucky with the changings of the currency rate during the past decade. Our floating home has been located in maybe 20 different countries during this financially turbulent period and we have undertaken some pretty costly boat work. Usually there has always been an unfavourable change in the exchange rates whenever we spend more local currency than normal.

Our currency is the Euro.



The value of the Euro compared to Thailand Baht (6/09-05/10).
Click on chart for a larger copy. Source: www.xe.com.

Half a year ago (November 2009) we arrived in Thailand and decided to undertake some major repairs and face lifts on our yacht. Now, in May 2010, when the work is under way and the invoices are dropping in, the value of Euro in Thailand Baht has dropped by 20% (even before the Greek problem hit the news, the drop was 15%). If the grand total value of our projects is, say 700.000 THB, our costs have increased by 3,500 Euros.

Bad timing, wrong time and wrong place.

Unfortunately there’s not much we can do about it. With hind sight somebody could say: Hey, why didn’t you terminate the amount in November? Well, we were not committed to all the projects until we had found the right contractors and agreed on prices, and by then we were already in April when the Greek problem suddenly hit the fan. Who would buy a large amount of Thailand Bahts just for speculation?

Anyway, we have seen this phenomenon before during our voyage.

Most countries in the Americas either use US dollars or their currency is linked to the dollar. We spent several years in Central and South America, the Caribbean and on the US east coast from 2000 to 2005. We had particularly expensive boat work done in 2002 and 2003, when the value of one Euro was around 0.85 US cents. After those years, the situation became the reverse and you could buy more than 1.5 US for a single Euro. However, by then we had moved to areas outside the USD-world and had little gain because of the strengthening of the Euro.

Instead, during the time when we spent around 50,000 New Zealand dollars on boat work in 2007, the value of the Euro decreased by 20% compared to the NZD.

Same stories, different currency, tough luck – this is cruising.