Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: World ocean freight markets improved a little this week. The Baltic Index movement does not feel so much like a true rally as it does the simple ripples of the market waves. I don’t see a lot of new demand, just reluctance in sellers’ attitudes to let go at cheaper values. I have to say we are still steaming in circles looking for market direction that is something different than sideways. But if you look back over the Baltic Dry Index from Q3 of 2013 to present, it appears the index has developed a strong resistance to drop below 1,000. World economic recovery is still the key.
Capsize vessels are currently earning about $12,200/day versus Panamax vessels at a low of $8,100/day. Panamax, Handymax and Supramax demurrage rates of $16-$20,000/day in the grain trade continue to provide better revenue for sitting in port with cargo than do daily hire rates.
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-February 2014 container shipments for Thailand.
