Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Following the crazy price action of the first quarter of 2021, dry-bulk markets have considerable rebalancing to do. Over the past three months, markets have been highly unusual whereby the smaller Handysize, and up to Panamax size, vessels have been earning more than Capesize vessels. A market correction is now taking place with Capesize markets stronger as the smaller size vessel markets adjust downward. North and South regional spreads are also adjusting.
Overall, vessel owners continue to look for rates to improve further beyond the typically soft first quarter. Vessel new build orders are climbing and even bankers are growing more optimistic about freight economics. The container shipping sector continues to have historic earnings that are projected to extend through the end of the year. It is spring and everyone is enthusiastic.