Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Ocean freight markets found additional support from Indian iron ore business combined with improved grain exports out of the Black Sea and the U.S. Gulf and East Coast this week. As such, daily hire rates on Panamax vessels increased by about $1,000/day. I am doubtful however about the market’s ability to keep the rally going. The Capesize vessel market seems to be running out of steam.
No significant new news in the PNW Grain elevator labor situation. The wheat harvest is progressing and we need to monitor the port situation closely.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent Jan.-Dec. 2011 and 2012, annual totals versus Jan.- April. (2013) container shipments for Taiwan.