Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Bears were in control of the freight market this week. Physical and paper values in the Capesize market declined while the Panamax market followed. The Supramax and Handymax sectors held up much better than the larger vessels. African swine fever, trade wars, and the slowing of global economic growth continue to weigh on freight markets. Some Dry-Bulk publications are trying to call this pull back a simple technical correction, but it is much more than that. Both Dry-Bulk and Containerized freight markets desperately need better cargo demand and growth. On the container side we are not seeing the normal pre-holiday rush for freight, as it seems that retailers have made their purchases early due to fears over the tariff wars. Something is going to have to change for the better or we will see a rapid acceleration of shipping consolidation.
