Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: It was a struggle for dry-bulk markets to maintain their values this week as shipping sectors moved mostly sideways. Dry-bulk markets have been trying to rebound and improve, but soft total cargo demand from China has undercut the attempts to accomplish this.
Q3 Panamax daily hire rates slipped from $27,000/day down to $25,500/day and Q4 2022 paper is currently trading at $23,500/day. The 2022 outlook dry-bulk markets is certainly not as optimistic as it was two months ago. Chinese economic growth and government policies will dictate the country’s import volumes.
Container market rates remain high, but U.S. port congestion has not yet increased as expected. U.S. West Coast labor contract negotiations are ongoing with no sign of an agreement soon.