Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-Bulk markets are still struggling, and big carries remain between the 30 day and forward markets as vessel owners continue to hope for a recovery. Traders say they simply cannot find much interest in moving the needle in these slow conditions. Coronavirus COVID19 still hangs over the market with a lot of uncertainty as to its full economic impact. Additionally, the large cost spread between VLSFO and HSFO is creating a substantial operating cost differential between scrubber-fitted vessels and those that must use LSFO. So, freight competitiveness will greatly depend on the specifics of the freight provider. Finally, of course, there is the issue of slowing global economies. Some are now predicting that Chinese GDP growth may drop from 6.5% to 4.5% or event possibly as low as 4.0%. In uncertain times everyone stays close to shore.
