Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry bulk vessel owners have found themselves involved in the once popular 1960’s game of Limbo. How low can the market bar go and still find participants? No one is laying up ships yet, but they are taking every measure to reduce costs and to resist the ever lower prevailing bids. The steady downturn of rates over the past 6 months appears to be stabilizing and may have finally found a bottom. There are some signs that enough damage has been done and that increasing operational costs will stem further reductions. But general cargo growth remains soft and grain vessel lineups at U.S. ports are also falling.
March Panamax daily hire rates are down another $1,500/day this past week to just $9,000/day, with Q2 2023 traded at $12,500/day. All hopes remain dependent on improved demand for dry bulk cargo to China.
