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Commodity Shipping Overcomes Covid on China Infrastructure Spend

  • Capesize ship freight rates surge as nation boosts imports
  • Analysts lift estimates on strong flows from Australia, Brazil
A bulk carrier cargo ship docks at an iron ore transfer center in Shanghai, China.
A bulk carrier cargo ship docks at an iron ore transfer center in Shanghai, China.

Photographer: Qilai Shen/Bloomberg

Ships that transport coal and iron ore to China are seeing a surge in earnings as the nation’s demand for commodities rises, despite concerns about a resurgence in cases of Covid-19 in many parts of the world.

Rates for Capesize ships, the largest among dry bulk carriers, have jumped by 48% within the past week, to about $23,700 a day on Monday. On Sept. 25, those earnings hit a two-month high, Baltic Exchange data show. Cargo flows have increased from Australia and Brazil, the world’s two largest iron ore producers.