Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: It was another up week in nearby Dry-Bulk markets as increased North and South American demand from grain and soymeal cargoes emboldened vessel owners. Black Sea freight also jumped higher due to additional Egyptian wheat demand.
The Capesize market, however, did not act with the same excitement and is mostly flat this week. Grain freight demand, by itself, cannot keep Dry-Bulk markets supported, so we will have to see how the Capesize and other markets react next week. Daily hire rates for Panamax vessels increased from $13,000/day to $13,950/day for September. Markets however remain inverted (or in backwardation) as the focus is entirely on the nearby positions. Panamax freight for the Q4 period is trading at $12,500/day with Q1 2021 at just $9,750/day.
