Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Freight markets are askew again with FFA paper markets for Supramax and Panamax markets holding up better than the larger Capesize sector. Capesize rates fell back this week largely due to paper selling while the smaller-size vessel markets held their ground. Panamax and Supramax markets were moderately higher than last week, and traders are still looking for further gains heading into the third quarter of the year. Visions and hopes of a commodity super cycle remain.
There is nothing new or encouraging to report in containerized grain export markets. The difficult situation persists, and it will likely be December or January before there is light at the end of the dark tunnel. U.S. containerized grain exports did relatively well for the first quarter of the year but have been steadily slipping since May.
