Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: As traders often say, “A bull market must be feed every day”. Unfortunately for dry-bulk freight markets, there has not been much optimistic news with which to feed bulls and rates have, therefore, suffered. As has been the case in grain markets, freight markets seem to have run up too fast and too far on initial concerns over shipments from the Black Sea. The market now finds that Russian shipments of crude oil and wheat are continuing despite the war. Ukraine remains a big question mark on production and shipments, but they did manage to execute some March exports. The overall freight outlook remains bumpy.
Container markets and logistics continue to show slow but gradual improvement. Fuel costs and labor issues remain the big concerns, as well as China’s covid-19 lockdowns that are impacting shipments. U.S. West Coast labor negotiations remain a big concern.