Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Physical dry-bulk markets were very thin and quiet this week. It appears most buyers are covered for November and vessel owners are waiting to see what December brings. FFA paper traders and vessel owners are optimistic cargo demand will pick up and the reductions in daily Panama Canal transits will create longer wait times and longer voyages, and thereby support higher rates. Some dry bulk shipments have switched routing to Asia via the Suez Canal. Drewry estimates that the longer route will add 5-6 percent to vessel costs and rates. FFA December daily hire rates for Panamax vessels currently sit at $11,864/day, with Q1 2024 at just $9,706/day.
