Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Today is the first work day back from the Lunar New Year Holiday (it is now the year of the dog). Asian exchanges and markets are back up and running. Trading volumes are understandably low and slow as everyone gradually returns to work. As expected, vessel owners and traders are anticipating that demand will ramp back up and that freight values will rise. We are therefore looking at slightly higher offers in the market today. Next week’s activity will provide a better indication of just how strong cargo demand is and where rates can go.
Grain shipments from East Coast South America are increasing, but vessel lineups at both the U.S. Gulf and PNW remain fairly strong, especially for sorghum cargoes out of the Texas Gulf.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to South China:
The charts below represent 2017 annual totals versus 2016 annual totals for container shipments to Thailand.
