Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Ocean freight markets are showing no mercy and continue to inflict pain on vessel owners and opperators.The market is still trying to find bottom. It may have temporalily done so today, as the 19-day slide seemed to have come to an end. Panamax vessel owners have simply backed away from chartering at current levels because the economics are just too painful. One vessel owner with 40 ships has offered to charter his vessels to anyone who will cover the cost of fuel. I am therefore leaving rates bacically unchanged for the week until we get a better view of how things are shanking out. Current daily hire rates are as follows:
Capesize: $5,215
Panamax: $6,176
Supramax: $9,197
Handysize: $7,734
Two PNW export Grain facilities, United Grain at Vancouver, Washington and Columbia Grain in Portland, Oregon have locked out the International Longshore and Warehouse Union (ILWU). PNW grain elevators continue to work as the situation plays out. We are seeing a rise in labor tensions as we move into the June-July wheat harvest.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent Jan.-Dec. 2011 and 2012, annual totals versus Jan.- April. (2013) container shipments for Malaysia.
