Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Every step forward for the dry-bulk markets seems to warrant a subsequent step back. Markets tried to rally early last week but, once again, fell back at the week’s end. So, for now, markets are simply steaming in circles waiting for a breakthrough improvement in global economic conditions and an increase in cargo demand.
Q1 daily hire rates for Panamax vessels remains around $7,250-7,300/day but Q3 has traded at $9,150-9,250/day. U.S. and most foreign grain ports remain open and international grain trade continues largely unimpeded. There are silting and restricted drafts at the Southwest Pass in the Mississippi River with maximum draft limits at 42 feet (12.804 meters). The Panama Canal continues to experience transit slowdowns and delays due to low water.
