Market Perspectives – August 19, 2021

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The bulls are running again; not in Pamplona, Spain this time but in Dry-Bulk freight markets. The one piece of advice common in both events is to stay out of the way. The Capesize market started the fireworks after Vale booked 10 September C3 iron ore vessels from Brazil. The Capesize Index hit a record high, breaking through 40,000 and hitting 45,000 before topping out. Panamax FFA paper for September reached $37,000 before dropping back to $35,750. It was a volatile and dramatic week with some profit taking at the top. Overall, market players still expect things to stay strong through the end of the year.

There is still no good news in container freight markets. The spread of covid-19 cases at Chinese ports is concerning to the market and it fears further port shutdowns are spreading.