Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The Dry-bulk market rally continued into mid-week but appears to be running out of steam. It has been an exciting ride, but profit taking is developing and the market must evaluate how much of an economic recovery will occur if rising COVID19 cases provides pushback. It will likely be difficult for freight markets to push higher in the near term. As mentioned, the market surge has largely been led by the Capesize market and FFA paper traders.
Daily hire spot rates for Capesize vessels jumped up to $29,250/day over the last week but have now retreated to $20,500/day. Panamax vessels hire rates remain close to $11,000/day while Supramax daily hire rates are now running $9,500/day for Q3 and Q4. Markets remain inverted as the forward months are trading at a slight discount. China is now on its Dragon Boat holiday and markets are resting and considering their next move.
