Market Perspectives – March 24, 2022

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Black Sea hostilities and continued uncertainty about the re-routing of cargoes related to the supply disruptions from Russia and Ukraine kept paper buyers active in FFA markets. Overall, markets are higher this week but are trading off the midweek highs at the week’s end. For major Panamax routes it was down $4.00/MT last week and up $3.50-4.00 this week. So, values are mostly steaming in circles trying to figure out things. Thirty-day daily hire rates for Panamax vessels reached $30,750/day with Q3 trading at $28,500/day and Q4 ending at $26,000/day.

Container markets and logistics continue to show slow but gradual improvement. Fuel costs and labor issues remain the big concerns.