Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The Capesize market finally showed signs of life and helped lead dry bulk markets higher this week. Improved demand for grain cargoes in both U.S. Gulf-Atlantic and Pacific regions supported the Panamax sector. Growing port congestion in Brazil and China also added to the market support.
Time charter rates for Panamax vessels from the U.S. Gulf to Asia now up to $423,500/day. Supramax vessels are getting $33,500/day for the same route.
Low water remains a problem at the Panama Canal but, despite what you may read, grain vessel wait times are not yet overly onerous at just 6-7 days. The U.S. Gulf route to Asia via the Suez Canal would take about 14 days longer. The wait times are a bigger problem for LNG, tankers, and other types of vessels.
