Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk freight markets have been doing a three-step dance over the last six months. Markets start out slow Mondays, take one or two steps forward on Tuesday and Wednesday and then take a step back on Fridays. There has been general progress forward, but it has been slow with intermittent stepping on toes and tripping. From a vessel owners’ perspective, more than anything else, it is hope that is holding things together.
Panamax vessel availability in the North Atlantic and now in the East Mediterranean tightened this week and the imbalance continues to haunt the market. In other markets, sellers are chasing bids lower. Overall, the market is softer this week. Backhaul freight from Black Sea wheat shipments to Brazil is creating cheap backhaul rates for soybean and corn shipments back to the Mediterranean. This is proving to be an awkward dance with the COVID music playing in the background.
