Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: It was a mixed week in dry-bulk freight markets; some regions were up a little and others remained weak and defensive. The market is still struggling to find adequate cargo support and firm direction. Aside from the freight rate picture, we have been having a difficult winter with logistical problems domestically: high water levels on the Mississippi River system, heavy snow and flooding on rail lines and high water and fog in the New Orleans port district. The Southwest Pass to and from the Mississippi River has also been fighting draft restrictions due to weather-related issues.
Buyers of both dry-bulk and container shipments have experienced, and should expect, some shipment delays. Hopefully we will soon transition out of winter and move to a more stable logistical situation. You will notice that we have seen an uptick in U.S. PNW vessel lineups; that speaks well for the U.S. export grain picture.
