Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: It was another week of trying, but failing, to rally in dry-bulk markets. Dry-bulk freight markets made a valent effort to move higher but could not find physical support. Vessel owners’ hopes for better values still ride on expectations of improved economic growth in China that has not yet materialized. The bottom line is that there is still too much uncertainty in the global economic picture, which is not a bullish scenario. Vessel owners may have to settle for steady markets for the balance of 2022.
The ILWU-West Coast Port labor contract negotiations are ongoing, but tensions have arisen between port management and the unions. Negotiations have hit a snag on the issue of automation and the way forward is increasingly contentious and uncertain. Shippers need to be prepared for the worst.
On the rail transportation front, a tentative contract between railroads and labor unions and has gone to the rank-and-file union membership for final approval. The vote was last week but the results are unknown and will likely take weeks to be announced.
