The cost of hauling iron ore is poised to rise to a three-year high after shipments to China expanded to a record, boosting returns for Nippon Yusen K.K. and other commodity carriers.
The Baltic Dry Index, a measure of commodity-shipping costs, had its biggest weekly gain since August 2010 as strengthening demand to haul cargoes from iron ore to grains lifted freight rates.
Near-record agricultural exports are diminishing the capacity glut in grain carriers, boosting rates for Safe Bulkers Inc. and other owners to the highest in almost two years.
Chinese imports of coal to generate electricity for summer is increasing demand for shipping as its stockpiles drop, according to Commodore Research & Consultancy.
Rates for Panamax vessels shipping grains and coal rose for a sixth session, amid speculation that demand to haul both cargoes is increasing.
Steel production in China is poised to decline after prices slumped for a fourth week, according to Commodore Research & Consultancy.
Charter rates for coal-hauling Panamax ships fell for a third day amid speculation above-normal stockpiles of the power-station fuel at a port in China, the world’s biggest importer, may be curbing demand.
The Baltic Dry Index, a measure of commodity shipping prices, slid for a sixth session as a surplus of vessels drove down rates owners charge to haul cargoes from iron ore to grains.
Vessels chartered to export coal to China, the world’s biggest energy user, increased by about 36 percent last week, Commodore Research & Consultancy said.
Shipping rates for iron ore are poised to double next quarter as Chinese steelmakers import extra cargoes after stockpiles at the nation’s ports collapsed to a three-year low.
"China will continue to import a robust amount of iron ore."
- Jeffrey Landsberg on Sep 09, 2013