Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: It was another soft week for world ocean freight markets. Demand is just not developing to the extent anticipated, or needed, in the eyes of vessel owners. The proverbial finger is being pointed at the slow economic growth in China and the Chinese cancellation of Brazilian soybean cargoes. We may have to wait until the U.S. wheat harvest in June-July to find additional demand for some of the excess freight. However, it will continue to be the Capes that drive overall market direction. Lower commodity prices would, of course, help build commodity demand.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent January-December 2013 annual totals versus January 2014 year-to-date container shipments for Hong Kong.
