Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: What goes up, must come down, especially if it lacks physical market support. This is the recent story of dry-bulk freight markets. It appears that freight traders got a bit too excited too early in the season and are now suffering the result. All the potentially bullish market factors remain, but, for now, China and global economic worries are overshadowing the arguments for higher rates.
Container market rates remain high and continue to deal with difficult port logistics in Asia and North America. Additionally, there are still growing concerns over the U.S. West Coast labor negotiations.