Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ship Costs in China Surge to 16-Month High in Sign Imports Gain

Don't Miss Out —
Follow us on:

Sept. 16 (Bloomberg) -- The cost of hauling iron ore and coal along China’s coast rose to a 16-month high, adding to signs the nation’s demand is strengthening for the two commodities that generate the most demand for dry-bulk shipping.

The China Coastal Bulk Freight Index, a measure of commodity transporting rates between the nation’s ports, advanced to 1,141.17 points on Sept. 13, a seventh weekly gain, according to data from the Shanghai Shipping Exchange. The measure has advanced 8.2 percent since the start of the year.

The increase is a sign of rising demand from China because coastal ships transport both domestic and imported cargoes to smaller Chinese ports from the nation’s bigger facilities, according to Pareto Securities AS, an Oslo-based investment bank. Imports of coal and iron ore are on course for a record this year, according to Clarkson Plc, the largest shipbroker. Rates for Capesize ships delivering both rose almost sixfold to $30,020 since the start of June, Baltic Exchange data show.

“It is a clear sign of high domestic demand,” Eirik Haavaldsen, a shipping analyst at Pareto, said by e-mail today. “This results in stockpiles being quickly emptied, and a continued need for further international imports, thus increasing demand for international vessels.”

Chinese stockpiles of rebar, the steel used to reinforce concrete, dropped to 6.25 million metric tons in the week ended Sept. 13, from 10.2 million tons in March, according to Shanghai Steelhome Information, a government-backed research company.

To contact the reporter on this story: Rob Sheridan in London at rsheridan6@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.