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COAL and
iron-ore freight rates rose to a record for a fifth day
on speculation China’s economic growth will bolster
demand for commodities.
The
Baltic Dry Index, a measure of commodity-shipping costs
on different routes and ship sizes, was at 10,994
Saturday, up 0.1 percent, according to the London-based
Baltic Exchange.
Record
purchases of commodities by China, the world’s
fastest-growing major economy, have congested ports and
caused freight rates to more than double in the past
year.
China’s
economy, the biggest contributor to global growth,
expanded more than 11 percent for a third quarter, the
government said yesterday.
“The
market is unbelievable as orders for shipyards are still
very healthy and consumption of iron ore is huge,’’ Alex
Harkess, director for dry-cargo chartering at Clarkson
Asia Pte in Singapore, said by phone today. “There will
be volatility but we don’t see any change in the
direction of freight rates. The final quarter will be
extremely firm.’’
Hiring
rates for a panamax, the second-largest type of dry-bulk
carrier, were at a record $91,975 yesterday, according
to data on the Baltic Exchange. Charter costs for a
panamax, which can transport 70,000 tons of cargo, have
more than tripled in the past year.
Chinese
steelmakers and traders are increasing iron-ore imports
in anticipation that prices will rise next year.
The
country became a net coal importer for the first time in
January, prompting other nations to seek coal supplies
elsewhere. ---Bloomberg |
