Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: If you read ocean freight news articles, they all believe that the stars are aligned for big economic growth, and the super-cycle in commodities and freight has arrived. After all, the stock market is up, commodity prices are booming, so why not ocean freight? If you are investing in Dogecoin or other crypto currencies, why not freight FFA’s? Emotions and hope are running strong.
I think the missing puzzle piece, however, is that commodity prices are high because of tight supplies and consumer buying of commercial goods has accelerated due to people staying at home and receiving government stimulus checks. But what happens when these factors end? Volatility remains.
Freight markets did experience a selloff and profit taking overnight and are off their highs for the week.