Market Perspectives – May 26, 2022

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Last week’s dry-bulk market rally fizzled out due to a lack of  follow through physical demand to support it. Ocean freight markets continue to be volatile; overall markets are trending upward, but it is a process that requires a step back for every two steps forward. This provides buyers with open opportunities.

This week’s weakness was the result of concerning news over China’s slow economic growth. Market bulls are still betting that the small 2022-2023 new vessel order book for dry-bulk ships and high fuel costs will eventually move markets higher. But Chinese demand is key.

Container markets continue to deal with difficult port logistics in Asia and North America and have growing concerns over the U.S. West Coast labor contract negotiations.