Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The bulls got hold of the freight markets this week and pushed things higher. This was the biggest single week jump in the Baltic Dry-Bulk index, and in physical markets, for the calendar year 2019. Better demand for iron ore and other commodities carried by Capesize vessels initiated the market rally and the bullish fever carried down into the Panamax sector. Supramax and Handymax sectors however did not find the same amount of support. Daily hire rates for Panamax vessels is now up to $14500/day. As mentioned last week, grain container shipping markets are finding it much more difficult to rapidly rise rates and are falling behind relative to Dry-Bulk shipping rate costs.
