9. Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk ocean freight markets attempted to rally back from last week’s big fall. At week’s end things are slightly improved week-over-week, but most of the strength from early in the week has diminished. We are still seeing good volatility in the Baltic indices. Yesterday the SC1-U.S. Gulf to China index was up 939 points on the day; today it is down 594 points. Physical markets are slightly better as vessel owners remain optimistic and stubborn and try to hold out for the higher figures they desire. Last week the U.S. Gulf Panamax market to China was down $1.25/MT; this week it is up $1.50/MT, so there is no big overall net change in things.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent 2017 annual totals versus 2016 annual totals for container shipments to Hong Kong.
