9. Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Despite the market’s attempts to hold up values the Q1 2018 slump in demand continues to weigh on Dry-Bulk markets. Grain volumes are down for Panamax and Supramax vessel cargo, and even the Capesize market has taken a big hit from lower iron ore and coal demand. Demand may pick up after we transition into Q2 of the year, but for now the market is back to dealing with more vessels chasing a slow growth in cargo demand.
Vessel owners are still optimistic about the 2018 outlook, and we will have to see just how their hopes play out.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
