Ore-Shipping Rates Seen 13% Lower as China Cuts Target: Freight
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Rates to ship iron ore, the second-biggest cargo after oil, are poised to drop to the lowest level in a decade after China cut its growth target, signaling weaker demand from the world’s biggest buyer of the commodity.
Capesizes, each hauling about 170,000 metric tons of ore, will earn an average of $13,000 a day this year, the least since 2002, according to the median of 10 analyst forecasts compiled by Bloomberg. That’s 13 percent less than the median in January. Shares of New York-based Genco Shipping & Trading Ltd., which operates nine of the vessels, will drop 19 percent in the next 12 months, the average of 11 estimates showed.