Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets lost more ground this week and freight reports state the market is “lacking the dynamism of recent months”. One might conclude that freight reporters are simply afraid to admit FFA traders got carried away with their enthusiasm and focused too much on ideas of a “Commodity Super Cycle”. Analysts do not expect a big selloff but increasingly think the market has leveled off after already digesting the most bullish news.
Unfortunately, the container freight situation remains largely unchanged, and the outlook is for much of the same through the end of 2021 and possibly into the first half of 2022. The 5,292 TEU container ship Orca 1 was reported to have been chartered for $300,000/day for a 2–3-month period. The only positive news this week was that the Evergreen vessel Ever Given finally docked in Rotterdam.
