Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry bulk markets continue to struggle in their effort to sustain a rally. FFA paper sellers emerged to dampen the bullish sentiment and moved markets slightly lower for the week.
The forward curve chart on freight futures is at an inverse and showing some pessimism about China’s economic recovery and the outlook for increased cargo demand. Water problems persist for the Panama Canal and Mississippi River. Vessel owners are anticipating Canal transit and wait times to remain up to ten days going into Q1 2024. Rain is still badly needed for Mississippi River water levels and barge drafts and harvest logistic concerns remain.
