Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: I wish there was exciting news to report, but ocean freight markets are just flowing along like the tides. Some weeks they are up a little and some weeks they are down a bit, and there is not yet any sign of new direction or true recovery. This week things went up a little, especially in the Capesize markets. Panamax and Handymax markets also showed some firmness. However, questions regarding the pace of the world economic recovery, and especially China’s economic outlook, still weigh on the market outlook.
Grain cargo demand from South America and the U.S. remains robust and vessel line ups at ports continue to grow. The market is expecting Brazil to execute record soybean and corn exports this year, and there is already market talk of some Brazilian Soybeans being imported into the US. We are shipping HRW Wheat down there, so maybe they can reload with beans and come back this way?
Union labor disputes at the port of Vancouver, Canada are disrupting cargo movements through that port. It is reported that up to 50 Grain ships are in the queue waiting to load and that domestic and export lumber and wood chip shipments have been severely affected.
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 2013 and January-December 2012 annual totals versus January 2014 year-to-date container shipments for Vietnam.
