Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: As Dr. Seuss’ book states, “There’s no joy in Whoville.” That is certainly an accurate statement if Whoville is where vessel owners live. If things continue going this way, then vessel owners may be looking for a new place to live! It was another disappointing week with slack demand for vessel owners and operators as dry-bulk markets continued their 2019 slump.
The P2A Baltic Panamax index is down 5,828 points since the beginning of the year. Panamax vessel freight from the U.S. Gulf to China is down $6.00 per ton since the Christmas holiday. The market obviously needs more cargo demand or an increase in vessel scrapping. Apparently, it is trying to motivate both.
The charts below represent 2018 annual totals versus 2017 annual totals for container shipments to Japan.
