Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The Capesize sector continues to struggle, and with it the rest of the Dry-Bulk market. Baltic indices were mixed for the week. The paper market for Capesize FFAs traded weaker with December hire rates slipping into the 15,000’s and Q1 2021 down to $10,900/day. Panamax and Supermax markets continued to follow the Capesize market trend fell back at week’s end.
Panamax November-December paper markets traded from $9,600-9,700/day with January and Q1 trading in a range of $7,950-7,750/day. Inverses continue to be the norm with most of the action focused on the nearby periods. Physical markets were slower to respond and are watching the FFA markets for future direction. Freight markets simply lack bullish news to fuel things higher. And the prevailing second wave of COVID in the U.S. and the E.U is keeping everyone nervous.
