Market Perspectives – March 25, 2021

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting:  Dry-bulk freight markets are higher for the week but have been showing weakness at the week’s end. It has been a back-and-forth battel all week with paper traders trying to keep the bullish momentum going but running into considerable resistance at these higher levels. Without new fuel to feed the bull market, it is going to be difficult to maintain the upward trajectory in these markets.

Panamax indexed daily hire rates are now at $22,500/day for April, down from a high of $25,500/day. Q2 rates at $21,000 and Q3 at $17,000, with Q4 down to $14,650/day. CAL 22 is trading at only $12,600/day, so the strong inverse in market opinion remains. The most discussed topic in freight markets this week is the Evergreen container vessel stuck in the Suez Canal and blocking traffic.