Shipping rates for hauling iron ore, which more than doubled this month, may be poised to snap the rally as competition intensifies to load cargoes from Brazil, said Clarkson Plc, the world’s largest shipbroker.
The worst commodity shipping market in 26 years may persist next year as an oversupply of vessels continues to curb ship owners’ ability to boost charter rates, according to Clarkson Plc, the world’s largest shipbroker.
Rates for coal-carrying ships jumped the most in almost three months as Chinese importers sought cargoes before the country’s New Year. The vessels are still earning less than they need to cover costs.
Rates for panamaxes, the largest coal and iron-ore carriers to pass through the Panama Canal, may jump about 55 percent as Japan buys more raw materials to generate power and rebuild after its worst-ever earthquake.