Palm & Veg Report, April 2018

Freight markets are feeling rather twitchy at the moment especially out in Asia where activity, particularly tropical oils, has been somewhat muted. That said a couple of punchy time charter trip fixtures were concluded this week at increased levels over last done. If past years have any bearing on the future then we do expect the next quarter to be challenging as this is the time of the year when activity has a tendency to dip out in Asia. The escalating trade stand off intensifying between America and China has been hugely unsettling and this is now weighing heavily on all the major commodity markets around the world at the moment. Combine this with the overcapacity of tonnage, not only in the MR sector of the markets, but in the stainless steel sector also where another 156 NB’s are still on the order books between now and 2020, it’s no wonder some people think we are facing further headwinds.

James Woolfson