Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: I must admit that this is not a very exciting global freight market. But when there is nowhere to go, there’s nowhere to go. I guess we can say things are just steaming in circles. We go up or down 1-4 percent one week and then take it all back the next. Month over month there is not much progress in either direction. This is good news for freight buyers who continue to get good deals and it continues to be a big frustration for vessel owners. I do not see anything on the horizon that will cause a big change. The North American soybean harvest is now a little over 62 percent complete with the corn harvest at 42-plus percent. U.S export sales, however, are lagging and U.S. farmers are not very willing sellers at current prices. U.S. barge and rail freight markets are indicating that there is no shortage of transportation equipment available, nor any big logistical snarls. Grain buyers, it’s all here and available at good values – come and get it!
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent January-December 2014 annual totals versus year-to-date 2015 container shipments to Taiwan.
