Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk freight news articles keep talking about the slow start to the 2019 season while trying to provide reasons why things should turn upward soon. However, the reality is that global economic growth has slowed and there continues to be more freight availability then cargo demand. As a result, vessel owners and operators are having to accept lower bids, and the markets just keep moving slowly lower. This is good news for freight buyers but not so pleasant for vessel owners.
Container shipping service is the next key thing to watch. With weak markets and rising operational costs, shipping lines cannot get much more out of rates and have few options to reduce cost. The one effective option they have is to reduce service and consolidate routes. Buyers beware.
The charts below represent 2018 annual totals versus 2017 annual totals for container shipments to Indonesia.
