Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-Bulk paper traders wanted to push the market higher early in the week but ran into profit taking pressure and soft support from the physical side. This curtailed the rally and left markets only slightly higher and quiet at the week’s end. This does not mean the bull rally is over, however, just that it may be taking a breather. Low new ship construction rates, the oncoming North American grain harvest, and continued demand from coal and minor-bulk cargos will likely keep markets at these higher rate structures into 2022.
Container freight markets remain a mess. Grain shippers report they are receiving about 75% of ordered empty containers and that they have experienced container demurrage charges at ports which far exceeded the initial freight rate. It looks unlikely that there will be any relief until after the first quarter of 2022. Interestingly, there are reports of Capesize Dry-Bulk vessels being chartered to carry containers. Where there is a need, the market will find a way.
