Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Just like children on a long car trip, dry-bulk ship owners are asking “are we there yet?” relating to whether markets have hit the bottom. It has been a very rough start to 2022 and rates dropped lower than anyone expected. Panamax grain rates from the U.S. Gulf to Asia have dropped by $8.00/MT in just the last three weeks.
The Chinese/Lunar New Year holiday period starts next week; this will be the year of the Tiger. The best hope for ship owners is that the Tiger will awaken in Q2 of 2022 and bring stronger demand for the balance of the year.
For those needing to book freight, current rate structures should be a good buying opportunity.
