Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry Bulk markets are still excited about having finally hit bottom and getting a bounce up in rates. As with most markets, those who are long believe the bounce will turn into a new up cycle and they are reluctant sellers as they wait for even better times ahead. Tanker freight markets remain hot as well as some Capesize markets. But last week’s strong action seems to have been enough for the Panamax sector as that market is rather flat this week. China’s demand has not yet rebounded but freight markets are expecting future construction growth there to create demand and push values higher as we move into Q2 of 2023. For now, it is all about anticipation rather than substance. Q2 Panamax daily hire rates appear to be stable at $16,500/day.
