Market Perspectives – July 2, 2020

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Capesize dry-bulk vessels must be using rocket fuel in place of VLSFO as that market continued to skyrocket this week. Capesize owners and sellers felt embolden by the tight supply of available vessels in the Atlantic, and the continued support in paper trading markets. The rally continues to be motivated by increased shipments of iron ore from Brazil, Australia, Canada, and South Africa to China.

Vessel owners now feel that the good days are back and here to stay. Daily hire rates on Capes reached $31,377/day. Panamax and Supramax markets were supported by the excitement in the Capesize market but could not gain as much enthusiasm. Physical rates in Panamax and Supramax sectors did not move too much this week. The market is still questioning how much further Capesize values can climb.  We will have to see if the high marks can be maintained into the weekend.