Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry bulk freight markets remain rather dull and therefore unchanged for the week. More shipping analyses are starting to recognize and accept the prevailing slow growth in cargo demand and the possibility that freight rates may not rise substantially until 2024. The key to rates is of course the health and growth of the Chinese economy. Vessel owners do know that their operating costs are rising, and that profitability is dropping. We will have to watch how this impacts the level of ship demolitions as we move through the balance of 2023. Panamax FFA July paper remained fairly steady at $10,500/day and Q3 up slightly at 11,500/day.
