Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: This week was not a story of the little engine that could. Freight markets staged a small rally early in the week but could not keep the momentum going and, once again, fell back. One does have to wonder when a bottom will be found. And, if shipping and the dry-bulk index has any true relationship with global economic health; it is not painting an optimistic picture.
On the bright side, from a shipper’s perspective, container markets are showing improved availability of empty containers at U.S. West Coast ports. This is a positive development for export grain sellers. U.S. containerized grain exports more than doubled in this week’s FGIS export report.
The ILWU-West Coast Port labor contract negotiations continue as the big issue of port automation remains to be resolved.
