Bulk shipping rates have done better than their related commodities recently. Oil prices have fallen 10% since the end of February, while Bloomberg’s broad commodity index fell 4%. The drop in oil prices may be the result of higher-than-expected U.S. production resulting in a perceived need for less capacity. Yet, oil trader Vitol suggests oil exports may increase, supporting shipping demand, which may explain the 2% rise in tanker rates. Bulk freight rates, shown by the Baltic Dry Index, jumped 21% despite the drop in commodity prices. That may reflect fundamentally better demand hopes ...
Supply Chain Research
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