Market Perspectives – November 1, 2018

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: I hope everyone had a safe and enjoyable Halloween. This will be a short report as not too much is happening in dry-bulk freight this week. Markets remain quiet and dull and therefore slipped back a little this week. Traders and owners seem to be playing a waiting game to see what will come to impact rates and allow the market to break out from its range-bound situation. Global economic growth rates are being carefully scrutinized and questioned and, of course, tariff challenges continue.

Rate quotes for Egypt have been adjusted to bring them in line with the current premium risk based on the last GASC wheat tender. The only other significant change in the market this week is the drop in the sorghum basis at the U.S. Texas Gulf. Unfortunately, this is not a good year for those who have export assets at U.S. ports. Excess fobbing capacity in Brazil is also hurting export elevations there.

The charts below represent 2018 YTD totals versus 2017 annual totals for container shipments to Japan.