‘Tis the Season to be Jolly

Ask an owner how he’s doing today and you will most frequently be rewarded with a smile. Even our most gloomy broker friends are modestly optimistic the markets will continue bullishly. Looking back over the past four years of Marine Money year end wrapups, this is the first time we have left one year and started another on such a pleasant note.

The effects of a synchronized global recovery are being felt in virtually every market segment. Commodity prices continue to improve – a good indicator of freight market rates and activity. Further, market mechanics will propel smaller, time specific submarkets that are sold against dated letters of credit or against “just in time” inventory schedules.

The tanker market, disrupted by US COFR requirements which have created a “have” and “have not” class structure, is nonetheless ahead of where it was earlier this year. And, for those few owners fortunate or skillful enough to be positioned to trade with the US with COFRs, we saw 100% increases in rates in the last week.

This is only an excerpt of ‘Tis the Season to be Jolly

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