Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets were mixed this week as the Capesize market ran into selling pressure and the Panamax and Supramax sectors tried to compensate for their slow performance the last two weeks. Freight markets needed some rebalancing after gains in the Capesize sector outdistanced all other sectors. After trading as high as $31,000/day last week, the July Capesize market dropped to $25,500-26,000/day and August to $18,100/day. Panamax markets rallied early in the week but backed off a bit at weeks end settling at $13,400/day for July and August. It has obviously been quite a ride and freight markets will now have to reassess just how much fuel this market really has. On the container side, it has been amazing how the shipping alliances have been able to stand together in their efforts to remove capacity from the market and enforce 3-4 GRI’s in 2020.
