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|Capesize Vessel Charter Market Plunges To 2003 Levels|
|= Voyage charter rate for Western Australia to China service falls to below $10 per ton|
The spot charter market for Capesize vessels has shown a downturn after hitting the peak in April this year falling to the levels comparable to June 2003.|
[Highest rates recorded in Feb. and Dec. 2004]
China-driven steel expansions have placed Capesize rates on an upward trend since the autumn of 2003 forming highest levels in February and December 2004. Voyage charter rate for Capesize vessels to service Brazil to China has exceeded $50 per ton, nearly 10 times the levels in 2002 when the market was drifting sluggish. However, as the iron ore price jumped by 1.7 fold in April 2005 forward, and the "Automatic Import Licensing System for Ores" came into a full-scale force in China, the country pulled out of its procurement activity which cooled down the once boomed freight market to the levels of two years ago. The rate for Western Australia to China service plunged below $10 per ton.
According to the shipping market sources, once the drawdown of iron ore inventories in China is completed, inquiries for raw material purchases by the nation will be resumed to eventually boost freight rates again. Current market trend is a gradual upturn but with no salient vigor.
|last modified : Thu 30 Jun, 2005 [10:53]|