Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk freight markets mustered some support this week to close slightly higher week-over-week.
The Capesize market is still defined as “range-bound” with September and Q4 daily hire rates stuck in the $25,000-$26,000/day range. First quarter 2019 is still a bit lower at $19,600/day. Panamax dry-bulk hire rates for September are trading at $11,675-$12,500/day while Q4 values are a little higher at $12,700/day. So, some optimism remains as index traders look for positive things to come from the renewed U.S.-China trade talks next month. This should keep rates stable to slightly higher unless the trade talks turn back to a negative tone.
The charts below represent 2018 YTD totals versus 2017 annual totals for container shipments to Indonesia.
