Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: After a brief run up in freight values, markets have now plateaued and seem to be reassessing conditions. This week saw Dry-Bulk sellers taking advantage of the inverted market (backwardation) situation and taking profits. The inverted markets also attracted better volumes of vessels for hire.
The Capesize sector lost $600/day in daily hire rates on Wednesday. Daily hire rates for Panamax vessels lost nearly $600/day over the course of the week and are now trading down from $13,200/day to $12,600/day for September. The market tone is currently described as “cautious”.
