Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: This was the week that the paper traders started to give in to market fundamentals. They have been giving it a good effort to support the Baltic Indices but are, of course, finding that we really do have more dry-bulk vessels looking for work than there is cargo to move. Thus, we had a market correction on the down side this week. The spot market is feeling the weakest. Container markets are feeling the same type of pressures.
It is true that vessel owners and operators are struggling with higher fuel costs and the issues of limiting CO2 emissions, but the market still needs better cargo demand to keep prices up. International trade tensions are not aiding this cause.
The charts below represent 2018 YTD totals versus 2017 annual totals for container shipments to South Korea.