Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: This week was mostly a repeat of the last. Dry-bulk markets are still steaming in circles without firm direction. The Capesize market was the leader last week but this week it was without feature. Grain cargo demand did not meet vessel owners’ expectations and the spot markets are a bit soft.
Most of the afloat sorghum cargoes have now found homes, and the Texas Gulf vessel lineups for grain have diminished significantly. Bunge’s CEO told reporters that “All soybean sales to China are now coming from non-U.S. origins.” So, there is nothing bullish for vessels owners to hang their hat on at the moment.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to South China:
The charts below represent 2018 YTD totals versus 2017 annual totals for container shipments to Thailand.
