Market Perspectives – August 12, 2021

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets were better for most of the week but topped out at weeks end due to profit taking. The Supramax and Handymax sectors led the way in both paper and physical markets. As usual, most of the support came for the 30–60-day periods.

All markets remain inverted and market news stories again note that “sentiment looks good” as vessel owners are still expecting improving conditions. Sentiment aside, it will take real demand to keep rates moving upward; and Chinese demand will be the key. Chinese iron ore imports are down but coal imports are up.

The container freight situation is not showing any improvement and COVID-19 issues are still plaguing Chinese ports. It is going to be a difficult ride into 2022.