Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: This week has been one of exceptional volatility in dry-bulk markets. The excitement started in the Capesize sector and flowed into Panamax and Supramax markets. Market action was fundamentally unexplainable other than buyer euphoria carried the day. It was as though Reddit and Robinhood traders got ahold of freight markets. Conventional wisdom, if valid anymore, would lead one to believe the market will see profit taking and an adjustment in the coming days. There has not been a big influx of physical cargo demand that would justify such a market jump. Market participants should approach this week’s rate action with extreme caution.
