Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Capesize FFA paper markets found some support this week from a rumor about China establishing a committee to consider potential ways to exit COVID lockdowns by March 2023. China news effects markets and Dry Bulk markets are always looking for supportive news. Despite this rumor, markets closed lower for the week. Panamax values are holding up a little better than the Capes at $12,500/day for December. Physical freight demand is soft. The low water situation on the Mississippi River has improved slightly with some rains and barge drafts have increased by 1.5 feet and looking to increase more within the next week. U.S. Railroad labor contract negotiations continue without resolution and fears of a potential rail strike remain. Much the same is true for the ILWU union contract negotiations at West Coast Container ports.
