Market Perspectives – July 7, 2022

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting:  Just as traders thought freight markets had found a bottom last week, things turned south and moved even lower. The current outlook has been described as “gloomy”. Paper traders are hoping values will fare better this week. Markets remain fearful of the global economic uncertainty and some predictions of a coming recession. Hopes are that the Chinese government’s financial stimulus package will provide some added cargo import demand.

The U.S. West Coast ILWU labor contract expired on July 1. Negotiations are ongoing with no sign of an agreement soon. Both sides state that a labor strike is not planned, at least not at this time.