Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting:We really have to search and stretch for news and direction in world ocean freight markets this week. Frankly the markets were really dull. The freight market did attempt a small rally early in the week but it did not last, and for the most part things have returned to about where they were last week.
The one exception was in the Capesize markets as they did sustain slightly better rates throughout the week. However, even the Iron Ore Capes from West Australia to China dropped back from their high of $8.10/MT to $7.50/MT at week’s end. It remains a buyers market.
Markets are still suffering from all the maladies that have plagued them for the past two years and they are still looking for the sunlight at the end of the dark storm. It is really dramatic to see the reduction in grain vessel lineups in the U.S. PNW. Five export facilities currently have no wait time, two have lineups of just 2-4 days and only one has a 9 lineup.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent January-December 2013 annual totals versus January 2014 year-to-date container shipments for Philippines.
