Ocean Freight Comments
Note: The weekly Transportation and Export Report will not be published the week of 22 December 2022. The comments, tables, and data below are from the 15 December 2022 edition of the report.
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets continue to sail in stormy seas. It is an up and down market every day without much change at each week’s end. Each time vessel owners think markets are finally improving, markets fizzle out a day or two later. Markets have simply not found sufficient physical cargo improvement to support a true rally.
The Chinese economy continues to be the key factor. A weak Capesize market is weighing on all other sectors. Daily hire rates for Panamax vessels sits at $12,500 for December with calendar year 2023 at $13,250/day. Markets are getting thin as we head into the Christmas and then Lunar New Year holiday period.
The low water situation on the Mississippi River has further improved. Barges are now loading to 9.0-9.6-foot drafts. The West coast ILWU union container port contract negotiations are continuing without resolution and talks are expected to go into early 2023. The rail strike threat has been resolved but slow service situation has not.
