Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Since the end of the Lunar New Year holiday we have seen a small bump up in the Baltic Indices and physical dry-bulk rates, but the markets have now turned flat and sluggish while they seek new direction. This makes traders wonder about the potential for much more upside movement. Panamax daily hire rates for March are near $7,000/day with the Capesize market at just $8,300/day. We still have a substantial carry in dry-bulk daily hire rates which simply means that vessel owners are begrudgingly selling at values the current market will give – while they hold out hope for a better future.
Much still depends on the outcome of the U.S-China trade war and the health of global economics. And, of course, the market needs to encourage vessel owners from building more vessels. This should not lead to big jumps in freight rates.
