Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets ended the week on a slightly higher tone. This was quite a feat as it was the first time in many months that dry-bulk markets were able to put together two back-to-back weeks of support without falling back. I’m sure vessel owners will view this as a sign of a market turnaround. In truth, markets are still struggling, and the recent rally has been a slow and gradual one. But we probably have seen the lows for the year and, if the U.S.-China trade situation allows, we should expect to see a continued gradual rise in rates as we move into Q4. The fly in the ointment, however, remains the tariff situation and how it is, or is not, resolved.
Either way, the market fully expects to see a move towards diversification of sea supply routes as both sides adjust their marketing patterns and reduce their dependence on one another.
