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    Shipping and Logistics

    Ocean, Barge, Rail & Truck Update

    Written by Sandy Williams


    MID-SHIP Group expressed optimism in its first report of the fall season. The Sept. 8 MID-SHIP Report said the group is “cautiously optimistic” about better dry bulk shipping demand in the second half of 2016. Oversupply of vessels continues to be a problem but as the seasonal grain shipments begin late in September demand should be stronger in October. Short term volatility is expected as rate levels increase into first quarter 2017.

    The Baltic Dry Index was at 796 on Sept. 13 after reaching 800 the day before. The index has improved significantly from its historic low of 290 in February. Oil prices in August were around $45/barrel pushing vessel fuel prices up to $251PMT. Bunker prices are expected to be between $230 and$260 as the year finishes.

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