Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk freight markets continue to slide lower. Just 30 days ago, Panamax rates from the U.S. Gulf to China were $78.00/MT but today they are $68.00/MT. Vessel owners are still hoping for things to hit bottom and bounce higher, maybe next week? Soft cargo demand, especially from China, and continuing concerns over the lack of growth in the Chinese economy, together with fears of a potential global recession has been weighing on trader’s outlooks. Panamax FFA paper for calendar year 2023 traded down to $14,150 from last week’s level of $17,500. Maybe we do not need a big new vessel order book?
In container markets, a trucker protest shut down the port of Oakland, CA. Overall container rates are falling lower and shipping lines are starting to lower their financial outlook for 2023. Negotiating parties involved in the ILWU-West Coast Port labor contract continue to express optimism that a deal can be reached without a strike; time will tell.
