Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry bulk markets want to go up but are struggling to do so this week due to China’s Golden Week holiday. Daily hire rates for Capesize vessels have finally risen to just over $20,000/day and the smaller size vessels are looking to play follow-the-leader. Chinese imports of dry bulk commodities appear to be increasing, and with this, so are expectations for higher freight rates. But this week produced mixed results and ended up mostly unchanged. The key to these markets will be what kind of buying interest shows up after the holiday period.
The U.S. PNW vessel grain lineup is now all soybeans headed to China and wheat destined for Japan and Korea.
Rain is still badly needed for Mississippi River water levels and barge drafts and harvest logistic concerns are still growing.
