Following the plunge in dry bulk freight market, shipping companies are banking on increased iron ore exports from Brazil to China and India to shore up freight rates, reports the Hindu Businessline. Hauling ore from Brazil to China will cost almost double than that from Australia. So in the current situation, ship-owners feel an increased flow of iron ore from Brazil, the world’s second largest producer, could boost the rates, as hauling the ore from there to China cost almost double than that from Australia. Brazil accounts for almost 25% of the global market share of iron ore’s trade volume. Brazil is home to one of the largest mining companies, Vale S.A. Brazil’s Ministry of Industry, Development and Foreign Trade had, last month, said iron ore exports from the country had increased by over 17 per cent in December to cross 37 million tonnes (mt), compared with the year-ago month. Vale increased output is reflected in Brazilian iron ore exports for December. The volumes from Brazil surged to 37.39 million tons in December, which is a huge 44% month-over-month. Shivakumar, Group CFO of Great Eastern Shipping hoped that Brazil is able to sell their iron ore more competitively than the Australians, because Brazilian iron ore to China is the best possible thing to happen to dry bulk shipping.
By James Regan, Reuters If Australian miners are worried about the dramatic decline in iron ore prices, it doesn't show. At an annual gathering of many of the world's biggest and smallest iron ore producers here the mood is upbeat - as if the heftiest one-day fall in ore prices since the global financial crisis never happened. "Iron ore mining isn't tennis, it's a contact sport," said David Flanagan, chairman of Atlas Iron Ltd
China's Qingdao port said on Wednesday it is investigating whether iron ore warehouse receipts were fraudulently used multiple times to raise finance from different banks, Xinhua news agency reported. The probe is focussed on one trader with iron ore receipts, the Chinese news agency said. It follows a broad investigation earlier this year by Chinese authorities into the use of iron ore as collateral in financing deals.
Iron ore shipments to China from Western Australia's Port Hedland, the world's biggest terminal for shipments of the steelmaking raw material, rose 3.3% from February to 31.2 million mt in March. While the rise is partly attributable to fewer shipping days in February, it also underscores efforts by Australian miners to displace China’s domestic production of iron ore. It also indicates that demand remained strong despite weakness in the market.
Essar Ports Ltd. (EPL) today announced the taking over of Vishakhapatnam Port Trust’s (VPT) Iron Ore Handling Complex on a Build-Operate-Transfer (BOT) basis, for a period of 30 years. Essar Vizag Terminals Ltd. (EVTL), a wholly owned subsidiary of EPL, will comprise three berths (two outer harbour berths and one inner harbour berth) with a combined capacity of 23 Million Tonnes per Annum (MTPA) which will be developed in two phases.
The dry bulk commodity imports into and exports out of China we have seen in the first half of 2016 are very positive – and nothing short of extraordinary, says BIMCO. But, putting it into perspective, compared to the devastating freight rate levels over the same period, it highlights that something is very wrong in the dry bulk market. The market is nowhere near balanced. BIMCO’s data on seaborne iron ore imports into China, shows a growth of 9
Iron-Ore carrier daily rates rebound as China spends US$158-billion. Iron-ore ships are poised to earn more than operating costs for the first time this year as rates rally on speculation Chinese steel mills will accelerate imports because of a 1 trillion-yuan ($158 billion) building program, reports Bloomberg Business News. Capesizes, each carrying 160,000 metric tons of ore, will earn $12,500 a day in the fourth quarter
Brazilian miner Vale SA posted a sharp decline in profit from the previous quarter as lower iron ore prices undermined record production of the steel-making ingredient. Vale, the world's largest producer of iron ore, reported second-quarter net income of $1.43 billion, down 43 percent on the previous quarter and below the average analyst estimate of $1.89 billion in a Reuters survey. "It was a very challenging environment where the price of our most important product has dropped by
The Lake Carriers’ Association (LCA) announced that the 2016 shipping season on the Great Lakes began on March 2 when the tug/barge unit Dorothy Ann/Pathfinder loaded 4,600 tons of iron ore at Cleveland Bulk Terminal for delivery to ArcelorMittal Cleveland at the end of the navigable portion of the Cuyahoga River. That much iron ore will keep the mill in operation for about one day. The vessel could have delivered another 4,100 tons
A rise in iron ore trade, higher steel prices and increased scrapping have all contributed to recent improvements but the outlook is fragile April 19, 2016. The latest Dry Bulk Freight Forecaster from Maritime Strategies International* analyses the recent uptick in the Capesize market and considers the positive trends and mitigating factors. MSI finds the indicators are relatively positive in the short-term for iron ore trade
Great Lakes-St. Lawrence Seaway shipping rebounded in August due to a surge in U.S. grain exports, iron ore shipment improvements and a steady flow of raw materials for manufacturing and construction. “We’ve seen a real rally in August. St
Clarksons Research says that iron-based materials such as steel are used incredibly widely in the world’s industries today, with clear implications for shipping too. The versatility and strength of steel has made it today’s most important construction material, with 1
The newly repowered M/V Herbert C. Jackson departed Fraser Shipyards in Superior, Wis., yesterday giving a farewell salute to the Twin Ports where it has been undergoing its steam-to-diesel conversion since December 21. As the last steam-powered ship in Interlake Steamship Company’s
Singapore Exchange Ltd (SGX) sees the potential to develop new freight derivatives centred on active Asian shipping routes and expand the use of freight derivatives with its acquisition of London's Baltic Exchange, a senior SGX official told Reuters.
Increasing trade and contracting supply will support a recovery in charter rates on major dry bulk shipping routes, with the prospect of China importing more coal and iron ore to combat pollution and poor quality, according to the latest edition of the Dry Bulk Forecaster
Pilbara Ports Authority (PPA) delivered a total monthly throughput of 52.9 million tonnes (Mt) in the month of July 2016, amounting to an increase of 2% from the same month in 2015. The PPA which operates as a Western Australian Government Trading Enterprise
More activity from Australian miners buoy capesize rates; dry cargo market remains over-tonnaged as fleet growth outpaces demand. Freight rates for large capesize dry cargo ships on key Asian routes should stay largely unchanged next week on static cargo volumes though shipowners remain
“We are about half-way through the 2016 navigation season and our overall cargo tonnage numbers are down by 11 percent,” said Betty Sutton, Administrator of the Saint Lawrence Seaway Development Corporation. “The lack of iron ore and coal has definitely been a contributing factor
The Hong Kong Shipowners Association (HKSOA) on Thursday called on the city's authorities to provide assistance to the crew of a Hong Kong-flagged coal ship off the east coast of Australia that is running out of food and fuel. Local Australian media and Great Britain's Guardian newspaper
The Q4 bounce – a seasonal staple of the dry bulk markets – looks likely for Capesize and Panamax segments, but the effects may be limited. Independent research and consultancy firm Maritime Strategies International (MSI) is forecasting a fourth quarter bounce in dry
Post the taking over of Vishakhapatnam Port Trust’s (VPT's) Iron Ore Handling Complex (OHC) on a Build-Operate-Transfer (BOT) basis for a period of 30 years in May’ 15, Essar Vizag Terminals Limited (EVTL), a wholly owned subsidiary of Essar Ports Limited (EPL) has boosted the
Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects demand for commodities to pick up this year. Africa's biggest shipping group, which is present in 37 countries worldwide
U.S.-flag Great Lakes freighters (lakers) moved 9.85 million tons of cargo in July, a decrease of 9.5 percent compared to a year ago, the Lake Carriers’ Association (LCA) reports. The July float was also 9 percent below the month’s five-year average.
Drewry expects the Baltic Dry Index (BDI) movements to moderate in September on the back of steady grain, minor bulk and coal trades. However, the iron ore trade is likely to lose its momentum in coming months. The BDI continued its rollercoaster ride into August first falling then
Shipments of iron ore on the Great Lakes and St. Lawrence Seaway totaled 6,048,409 tons in August, an increase of 2.9 percent compared to a year ago, according to the Lake Carriers’ Association (LCA). However, shipments trailed the month’s 5-year average by 5 percent.