Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: The Baltic exchange indices slipped a little lower this week. Trading volumes were again light, and the Chinese holiday helped to create a quiet and softer tone to freight markets. Rates in the physical market are probably slightly slower this week but, due to very light trading activity, most rates have been left unchanged for the week and we’ll wait to see how things develop next week. Corn and soybean harvests have started in the southern growing areas of the U.S., but it will be another 20-35 days before it reaches the primary production areas. With the relatively low commodity prices, most in the market are expecting farmers to hold back on harvest time selling, so we are unlikely to experience a harvest flood of grain or much logistical pressure.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent January-December 2014 annual totals versus year-to-date 2015 container shipments to Japan.
