Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The market gives, and the market takes away. This was a relatively quiet week with the Eid al-Fitr holiday in Singapore and many other global regions/markets. What the market gained last week it took back this week. The trade war and resulting changes in global trade routes are big concerns without much clarity. Traders and vessel owners cannot yet determine much grain and other commodity business will shift from various origins to China and other buyers; and therefore, how vessel positioning will have to change.
The World Bank cut its 2019 global economic growth forecast from 2.9 percent down to 2.6 percent for this year. Last year’s growth was 3.0 percent. 2020 growth is projected at 2.7 percent. This obviously does not bode well for cargo demand growth.
