Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets went up $0.50/MT last week and then down $0.50/MT this week. Last week’s support quickly faded, and markets are back to steaming in circles. Freight markets are thin and lacking excitement. Until something changes/improves with the Chinese economy, this is the environment in which we operate. August and Q3 FFA Panamax markets are trading at $8,300/day while Q4 has slipped 900 points lower to $9,750/day.
The Ukraine Black Sea Grain Corridor has been closed by Russia and grain buyers are looking for alternative supply origins. This should add some tonne-miles to some grain shipments.
The ILWU West Coast Canada port strike is both on and off. Labor unions want to strike but the government says they need to provide 72 hours advance notice. The past mediated contract has been rejected.
