Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: It was another up and down week for dry-bulk freight markets. FFA paper traders tried to rally freight markets early in the week but again ran into resistance at the week’s end. Overall, freight markets are not much changed from last week as they have concerns with international financial markets and chatter about potential recessions. The only sector to move up this week was the Capesize.
Those who remain bullish still believe Chinese ports congestion and added ton-miles from switching out of Black Sea markets will eventually drive things higher. But freight demand has not yet increased, and major cargo switching has not yet taken place either; so, the freight bulls will have to wait.
Container markets are, of course, still dealing with Chinese port congestion due to the COVID lockdowns and difficult logistics.