Tuesday, 10 Jan 2012
It is reported that Hire costs for the largest ships hauling raw materials such as iron ore and coal fell the most in more than three years as Chinese demand for cargoes weakened.
London based publisher of freight rates on maritime routes that daily rents for capesizes tumbled 18% to USD 17,821 the lowest price since August 30. The drop was the biggest since October 2008. Rates have plunged 46% from the 2011 high of USD 32,889 on December 12.
Mr Richard Lee a freight and iron-ore trader at Barclays Capital in London said falling Chinese imports of iron ore and coal are cutting demand for shipping. Domestic iron-ore prices have declined relative to the cost of foreign cargoes and price caps have reduced the Asian nation purchases of coal.
Mr Philippe van den Abeele MD of Castalia Fund Management Ltd a London-based adviser to a hedge fund trading shipping derivatives said “The drop is being caused by just a complete lack of cargoes at the beginning of the year. It’s becoming a bit of a dock-site as capesizes seeking work gather around trading hubs.”
(sourced Biz.thestar.com.my)
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