Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets are a story of the ship that is not yet going anywhere. While vessel owners are waiting for better economic news, markets continue to steam in circles. Markets are doing their best to hold steady and resist pressure to go lower, but improved cargo demand is still lacking. Hope remains that the coming North American grain harvest will provide some support. September FFA Panamax markets slipped back to $11,650/day and Q4 is traded at $11,500/day with CY 2024 at $10,750/day.
The water situation at the Panama Canal is not improving and wait times are increasing to 14-17 days for non-scheduled cargo vessels. This will obviously cause grain ships to re-think their schedules and potential routes. Low water is also a growing concern on the Mississippi River and barge tow sizes will be decreasing until things improve.
