Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets bounced around this week trying to determine if they want to go higher or lower. At weeks’ end, the FFA paper market found support and finished the week slightly higher. The smaller size ships continue to fare better than Capesize vessels.
It is clear freight markets are getting a bit toppy and, though vessel owners remain bullish, it will not be easy for rates to climb higher. But this does not mean markets are set to drop much either. This is a new market environment, and I suspect we will have to live with these generally higher rates through 2021. The same holds true for container rates.
