Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Happy New Year! Markets and traders have finally returned from their two-week holiday. This week has been a two-sided trade with the Capesize sector continuing to fall while the Panamax and Supramax markets rebounded as traders squared up their positions. Time will tell which market proves to be leading in the right direction. There are a good number of ships looking for work, but owners are holding back hoping for better values. It is important to remember that the first quarter of each year tends to be relatively week.
Significant for the U.S. Gulf in 2022 will be the deepening of the New Orleans port drafts to from 47 to 49-50 feet.
Unfortunately, there is nothing new or positive to report in container grain freight markets. Logistics remain a mess and there is currently no hope for much improvement over the next few months.