Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting:As we move closer to the North American fall corn and soybean harvest, Panamax and Supramax ocean freight markets are trying to extract better/higher rates. To some extent they are having success as rates are moving up slowly and remain at a carry out into October, November and December. Handymax and Handysize vessel sectors are also stepping up rates.
The big question will be how much more support they can gather in a market that is still tilted to the oversupply side. Capesize vessel markets seem to be running out of steam after climbing higher over the last three weeks.
World buyers need to be prepared to pay higher demurrage rates for harvest time shipments. Export logistics will certainly be a buyer’s biggest challenge this season.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent January-December 2013 annual totals versus January-August 2014 container shipments for Indonesia
