Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Yes – monitoring global ocean freight markets has become a bit like watching paint dry. There is not much action or movement, let alone excitement. In the commodities markets we would call this market “range bound.” Over the course of the past ten months U.S. Gulf Panamax vessel grain rates to China have ranged from $28-35.00/MT, with most of the period trading between $30-33.00/MT. Over the same period U.S. PNW rates to China have run between $16.00-19.00/MT. Not much excitement here. And the future, or at least the next six months, does not look likely to bring much change to this situation.
So, grain buyers should feel comfortable with these market economics while vessel owners will continue to suffer. And I will just have to keep moving things up and down $0.50/MT each week just to make it look like there is some action.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent year-to-date 2015 versus January-December 2014 annual totals for container shipments to Hong Kong.