Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk ocean freight rates held up pretty well this week with needed support from the Capesize market. Any real increase in Dry-Bulk market rates is going to have to be led by the Capesize market, and that is what is occurring. It still revolves around China’s import demand for raw materials. Given the stockpiling that is taking place in China, one has to question how much more import volumes can increase. The physical market is trying to follow the Baltic Indices, but is doing so reluctantly and starting to feel a bit toppy at week’s end. Since we are approaching the holiday period, I’m leaving most rates unchanged from last week’s levels.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent YTD 2017 versus 2016 annual totals for container shipments to Thailand.
