Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The Baltic Dry-Bulk Indices were down most of the week but staged an end-of-the-week rally and closed unchanged to up just a little. The Capesize physical markets enjoyed most of the uptick with Panamax vessel rates showing little change for the week.
Grain Container markets are still confused over the Hanjin bankruptcy, with many expecting a $150-200/TEU GRI in October. However, shipping lines will find that they will likely give business back to the dry bulk sector if they try to maintain such increases. The South Korean government and Hanjin Group have promised to spend $90 million (USD) to free up stranded containers around the world. Chinese authorities have backed off a mandate that all containers arriving in China be treated for Zika Virus. Mississippi River Gulf export elevators are getting ready for what they expect to be a very busy harvest season this year. Loading lineups are growing.
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 South Korea.
