Traders Accelerate Purchases of Iron Ore Dry Bulk Carriers

As China's steel mills increased their import of raw material steelmaking and triggered an upsurge of iron ore procurement, recent dry-bulk shipments of jellyfish-type vessels have continued to increase. According to figures released by the London-Baltic Maritime Exchange, the rent reported at the end of August was 34,488 US dollars, an increase of 2.2% from the previous day. The single-month increase in August was as high as 130%, but it still did not exceed the record of the highest increase of 212% set in May of last year.

According to Ospredt, an analyst at Norwegian Arctic Securities, Oslo said that since July and August, Chinese traders have been accelerating the purchase of iron ore. In August alone, the import volume reached 51.3 million tons, an increase of 8.7% from July. At this stage of the ship's rent “fell more than more,” Chinese buyers’ demand for iron ore will increase, which will help shipowners to spend more than twice the actual supply of seaborne vessels.

The Baltic dry bulk freight index rose to 2,741 yesterday. The current high rent is mainly due to rising demand for iron ore, coal, and grain. According to the assessment of London Clarkson Shipping Consulting, the global dry bulk fleet capacity increased by 14% in August from the same period last year to 500 million tons. It is expected that the total volume of seaborne trade will increase by 7.6% this year.

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