Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Amazingly last week’s indices and rates were not the bottom of the market. Maybe this week will be? The markets rate of decline has moderated and it is very difficult to believe things can go lower. Capesize rates are virtually unchanged for the week. Cheaper crude oil and China’s announcement that their economy grew at an even slower rate of 6.8 percent last quarter only helps feed the negative sentiment.
It should be noted that due to high water levels Port of New Orleans, LA bar pilots have reduced the maximum draft recommendation from 47 feet to 43 feet.
PS: If you bought a frame for last week’s report just save it – you should have a historic low to put on the wall soon.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent year-to-date 2016 versus January-December 2015 annual totals for container shipments to Hong Kong.
