China Steel Binge Spurs Record Hiring of Iron-Ore Vessels
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Freight traders are hiring record numbers of iron-ore carriers in the spot market as Chinese steel production expands at the fastest pace in three years, spurring the biggest rally in shipping rates since 2009.
One-time charters to haul the commodity on Capesizes, the largest ore carriers, rose 51 percent to 124 in September from the previous month, according to data compiled by Morgan Stanley. More than 90 percent are bound for China, and the ore they carry would make enough steel to build about 150 Golden Gate Bridges. The surge means more demand for Nippon Yusen K.K. and Mitsui O.S.K. Lines Ltd., which are based in Tokyo and control the biggest fleets.