Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Slow steaming seems to apply to dry bulk freight markets, just as it does to vessel speeds. Markets are simply going nowhere slowly. Every week there are reports of potential improvements in freight values and optimistic projections; but by week’s end everything has lost steam and settled back without much change.
The most significant market news involves logistical concerns. As mentioned before, there has been an agreement reached between the PMA and ILWU on a new 6-year labor contract for West Coast container ports. The Panama Canal continues to struggle with low water conditions and has implemented reduced vessel drafts for transits. By July 19 the maximum draft for transits will be down to 11.7 meters or 38.5 fresh-water feet. This will obviously affect grain cargoes out of the U.S. Gulf, which could otherwise load out at 44 feet.
