Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Not to sound like a broken record, but it was another ugly week for vessel owners as dry-bulk markets continued their slide lower. October offered no help for vessel owners, and November is not yet helping them either. Looking back one month to 17 October, we see that Panamax Dry-Bulk freight to China has fallen 13-16 percent. Rates for U.S. Gulf to China have dropped $6.50/MT, falling from $51.50 on 17 October to $45.00 today. U.S. PNW to China freight rates have fallen from $28.50 to $24.00/MT. To make matters worse, the technical charts for Capesize and Panamax Index markets still look quite bearish. Vessel owners are obviously hoping markets will hit their bottom soon.
