Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Freight and commodity markets have a lot on their minds: war, higher fuel prices, economic sanctions, the re-routing of logistical chains for many cargoes; and of course, much uncertainty. Uncertainty normally motivates market players to move to the sidelines until the picture becomes clearer. These are very different and unusual times, however, and as such, traders of all descriptions have decided to seek safety through covering their needs. This, in turn, has pushed markets higher.
As mentioned last week, things are going to be quite jumbled for a while and this will add to market volatility. FOB vessel grain basis levels are simply a wild guess this week.
Container markets are showing some improvement; meaning slightly lower rates and improvements in some logistics; but this still might be temporary? There is still face the risk of a global economic downturn.
