Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The Baltic Dry-Bulk indices are lower for the week. After a weak start through Wednesday, buyers finally showed up on Thursday to stop the slide and add a little support. Daily hire rates for November Capesize vessels traded at $19,000/day, up $1,500 from the low, while December traded at $17,000/day. Daily hire rates in the Panamax sector managed to rebound to $11,000/day for November and $10,800/day for December. Both markets remain inverted.
U.S. containerized grain exports continue to be robust. Logistical backlogs remain at the Los Angeles/Long Beach container hub, but container sales of grains are looking optimistic. U.S. grain export fobbing margins remain excellent, and historically high, at $.50-.65/bushel ($18.40-$25.60/MT). And this does not even include the vessel dockage fees being collected.
