Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The Baltic indices were mixed this week as paper traders again tried to push things upward but could not gather enough support to hold the market gains, and physical markets did not want to follow. All-in-all, the markets were largely dull and continue to be rangebound. Nothing new or exciting to report for now.
We are likely looking at a 3 percent growth in the total Dry-Bulk vessel fleet this year verses an estimated cargo growth of 2.5 percent. Vessel scrapping activity has slowed to a trickle and this certainly does not support higher rates in this sector. However, the biggest vessel operating cost influence will be the required switch to low-sulfur fuels by 2020.
The charts below represent 2018 YTD totals versus 2017 annual totals for container shipments to Hong Kong.
