Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting:It was another mixed week in world ocean freight markets, and it seems that they’re still steaming in circles.
The Capesize iron ore trade between West Australia and China slumped back to previous levels. Like last week, the Atlantic Panamax trade was stable but the Pacific markets continued to be soft. The spot and 20-day market remains the weakest with vessel owners refusing to let go of forward tonnage for September-November unless they can get a $4.00-5.00/MT premium over nearby values. Twenty-day Panamax rates for soybeans from the U.S. Gulf to China have been as low as $40.50/MT, but Chinese crushers have had to pay up to $45.00/MT for October shipments.
Here in China feed millers are talking about the possibility of their government placing restrictions on imports of U.S. sorghum. The feeling here is that the Chinese push back on feed grain imports is all political. But I have also heard crusher projections that China could import up to 73-74 MMT of soybeans in 2015.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
