Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Spot and nearby dry-bulk freight markets are still depressed but edged slightly higher this week. The open question for vessel owners is, should they capture the carry in the market by booking/selling the Q3 and Q4 values or continue to wait and hope that things improve in the next 3-4 months? Grain traders would caution that it is always best to lock in the carry in such markets as the better deferred market values generally tend to collapse as time moves forward. Dry-bulk markets have witnessed brief periods of support (measured in hours), only to run into selling pressure on every tick higher. The 30-day market is the one to watch for directional signals and, for the moment it is depressed and looking for bids.
