Market Perspectives April 17, 2014

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Was this a week of finding a temporary bottom to the freight market? For the Panamax sector in the Atlantic it very well may have been. The P2A Panamax index in the Atlantic seemed to bottom out on Monday and improve gradually through the week, although the physical market remains soft. Brokers are telling me that spot cargos can be traded at lower numbers than indicated below for the 45-day market.

All other markets, including the Panamax sector in the Pacific, continued to languish. The Chinese cancellation of soybean cargoes (soybeans and freight) has obviously been a negative influence as well as a demoralizing one on the market. Further, this is a slow holiday weekend with many taking off on Good Friday.

The Capesize market continued to be the biggest loser. So far the first half of 2014 has not been kind to vessel owners or operators.

This is also the week that the first Panamax vessel of Brazilian Soybeans is supposed to arrive in the Mississippi River for discharge via Floating Rig into barges with the cargo moving upriver to processing markets in the Southeast.