Market Perspectives – December 16, 2021

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: It looks like dry-bulk vessels owners will not be receiving any presents from the markets, not even coal. There are still nine days until Christmas, but the holiday doldrums have already arrived. Physical markets are thin and quiet and FFA paper sellers are not finding much buyer interest. The FFA December Capesize market dropped 5,000 points this morning. This will likely motivate more traders to give up the effort, take off early for the holidays, and wait for the new year to resume their activities. No one trades during a holiday period, expect those who must; those who are stuck.

Other than the continued difficult logistics, product back orders and delayed shipments, there is nothing new to report in container grain markets. Customers however must be careful of what they wish for. The calls for U.S. government action to force shipping lines to take grain shipments will surely backfire. If enacted, I am confident shipping lines will have an unpleasant solution to that requirement.