Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: There was a change in Dry-Bulk freight direction and timing this week. The week started out slow but, in contrast with recent trends, the market rallied at week’s end. Improved iron core and coal cargo demand boosted the Capesize market, which in turn lent support to the Panamax sector. Panamax vessel rates were also supported by healthy grain demand from the U.S. Gulf to Asia. As the physical markets showed signs of life, the paper traders jumped back in. October and Q4 Panamax rates traded at $12,500-$12,600/day. The U.S. Gulf grain vessel lineup is getting bigger. Two Gulf export facilities have 8 and16 vessels in port and waiting to load, with more arrivals this week.
