Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The freight markets have that sinking feeling again and it was not a good week for vessel owners. I think everyone has heard this news many times before. World freight markets are still waiting for the turnaround that seems to be always just over the horizon in the next physical quarter. I still have to believe that markets are very close to a bottom and do not have room to continue down too much further. However, I certainly do not see anything in front of us that would cause a significant upward rally. Vessel owners are just going to have to hang on for a while longer if they can. On spot and short route business Panamax vessels have been getting only $2,000/day in the Atlantic verses $4,900/day on longer hauls.
It should be carefully noted that the below rate indications are for the 30-45 day market. Spot prices can be lower and vessel offers out into September and forward positions will definitely be higher
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent January-December 2013 annual totals versus January-May 2014 container shipments for Philippines.
