Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The world is not just living in interesting times; these are very unusual and chaotic times. Other than those who are over 90 years old, few of us have experienced such an environment. Financial and oil markets have taken a big dip, and this is impacting global economies and, in turn, ocean freight markets. Ocean carriers have been trying to keep their heads above water by resisting sales at lower levels, but those efforts have been met with substantial pushback.
The primary dry-bulk market impact from COVID19 has been the slack cargo demand. There have not yet been many physical restrictions on the movement of vessel in or out of world ports but are few are developing. The port of Houston, Texas has temporarily closed the Bayport and Barbours container terminals due to employees testing positive for COVID19. The port of Fuzhou, China is starting to quarantine incoming ships from countries including the U.S. for 14 days. There have been some loading delays in Argentina due to unclear, and ever-changing regulations, but that tends to be the norm for Argentina. Many ports have placed restrictions on the movement of foreign crew members and the ability to exchange vessel crews while in some countries and cities. But the overall ability to move cargo remains very fluid. Now we just need more business.
