Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Last week we wondered which shipping sector, the Capesize or Panamax, was taking the lead in market direction. This week it has become clear that it was the Capesize sector, which had another bad week as it continued its downward slide. Other vessel segments had no choice but to follow the Capesize market lower amid thin cargo demand. In historical fashion, the first quarter of 2022 is shaping up to be the weakest quarter of the year. But there is still a ways to go yet and volatility will always be present.
As the U.S. Army Corps of Engineers gradually deepens Mississippi River path from the Gulf to the port of New Orleans, U.S. exporters will be able to load bigger grain cargoes. The general rule is that for each additional foot of draft, vessels will be able to load about 2,000 additional MT of grain cargo.
Container logistics remain a mess and there is currently no hope for much improvement over the next few months.
