Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Ocean freight markets are trying to shake off that sinking feeling. It was an up and down market for most of the week, but it looks to be ending on a more positive note for vessel owners. A degree of optimism has returned to the Baltic Indices and the faces of owners and their bankers. Though many Dry-Bulk vessel owners have decreased their annual financial losses, they still remain in the red. So, we will have to see if the markets can actually sustain a rally or if this simply turns out to be another false start. Physical markets have been slower to react this week and I am therefore leaving most rates unchanged; we’ll wait to see what next week brings.
I continue to doubt that we will experience any substantial upward turn in vessel rates in 2017.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent YTD 2017 versus 2016 annual totals for container shipments to Hong Kong.
