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Ore-Ships Returns Have Third-Biggest 2012 Drop on Slowing Demand
May 25,2012 10:55CST
industry news
Source:SMM
Returns for Capesize ships that haul iron ore fell 14 percent, this year’s third-biggest drop, as demand for commodity cargoes slowed amid a glut of vessels.

Returns for Capesize ships that haul iron ore fell 14 percent, this year’s third-biggest drop, as demand for commodity cargoes slowed amid a glut of vessels.

Daily average earnings plunged $1,080 to $6,847, figures from the London-based Baltic Exchange showed today. Jan. 5 and Jan. 12 were the only sessions in 2012 to see larger declines. The vessels are the largest tracked by the Baltic Dry Index (BDIY), a broader measure of costs to transport raw materials, which slid for a third session.

Chinese manufacturing activity continues to contract, cutting demand for shipping, RS Platou Markets AS said in an e- mailed note today. Manufacturing in the country may shrink for a seventh month, a private survey showed. Vessel demand remains subdued in a “persistently” oversupplied market, Platou said.

“The shipping markets would continue to struggle to find a stable footing anytime soon,” analysts at the Oslo-based investment bank led by Frode Morkedal said in the report.

The index fell 3.8 percent to 1,058, the lowest level since April 19, according to the exchange. The gauge is down 39 percent this year as the fleet of ships hauling dry-bulk commodities expands more quickly than demand.

Daily returns for Panamaxes, the biggest ships to navigate the Panama Canal, slid 4.7 percent to $9,010 as Supramaxes that are about 25 percent smaller rose 0.3 percent to $11,751. Handysizes, the smallest ships in the index, were little changed at $9,696, the highest level since Nov. 10, the exchange’s figures showed.

 

 

Capesize
iron ore
demand
glut
vessels

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