Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The global Dry-Bulk shipping industry has not returned to rough seas but market rates are bobbing around in this relatively quiet start to the New Year. The Chinese Lunar New Year commences in another 8 days. All in all, things are not moving in any decisive direction. I saw a Shipping Herald news headline earlier this week that read: “Dry Bulk-Capesize Rates to Slip; Low Demand, Overcapacity Weigh.” Where have we heard that before?
In viewing the vessel lineups in Brazil, it looks like we are starting the shift to South American supply of soybeans to China and other destinations. Between now and February 8 the port of Paranagua has over 19 soybean vessels scheduled. Santos has over 27 vessels and there are more at the other 12 Brazilian ports as well.
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 2016 annual totals versus January-December 2015 annual totals for container shipments to Indonesia.
