Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The paper bulls got a hold of the Dry-Bulk markets this week and pushed the market higher. The physical side of the trade was happy to follow, and the market seems to be starting to understand that it is on limited time to comply with IMO2020 and the capital costs are hitting home. Daily hire rates in the Panamax sector for July jumped to $11,200/day while Q4 went to $11,600/day. Calendar year 2020, however, remains inverted at $9,850/day; so, there remains uncertainty as to how far the market rally can extend. The Handy and Handymax freight sector was not able to realize the gains attained in the larger vessel markets.
