Cooked Up A False Prosperity Of The Two Expanded Charter To Increase Bargaining
Industry believes that recovery prospects are not optimistic about the shipping industry
Dry bulk shipping boom of representatives of the Baltic Dry Index (BDI), has hit a new high during the year. But behind the major force behind the “two extension” (Rio Tinto, BHP Billiton) has raised freight charter, and this for the new year Iron ore talks Rally move, do not indicate significant warming the shipping industry.
Two expansion “will be by charter Iron ore Large to China, pushed up BDI index, resulting in iron ore demand booming, not only can increase the iron ore mining company in the negotiations of the chips, but also widen its rival Brazilian iron ore giant CVRD’s price advantage.
High behind bubble As of November 18, the Baltic Dry Index rose 5.98 percent, to 4643 points, achieved since September 23 last year, the highest level, this is the BDI rose for 15 days.
BDI index is mainly used to measure, including iron ore, cement, grain, coal and fertilizers, and other resources in the dry bulk shipping freight rate level. Yesterday, a shipping analyst told CBN reporter, recently, China’s strong demand for iron ore and coal, China and Australia, increased port congestion situation and tight supply of ships have helped fuel the rally in BDI.
First, because winter is the peak season for coal demand in Europe and Japan and other countries for coal imports also increased, thus promoting the Panama capsize boats and tariffs; Secondly, since the cold weather caused the decrease of the northern port handling efficiency pressure caused the ship to Hong Kong in Hong Kong, to a certain extent, caused by the tension of vessels on the market, pushing up the inquiry also offer more. More important, nearly two months, China’s iron ore imports and the increase in inbound freight dominated the market trend, promoted the freight index rose.
It is noteworthy that the two Australian mining giants BHP Billiton and Rio Tinto, they began to flood the market with a charter for the upcoming iron ore negotiations in the new year rally.
The authority of the author access to the shipping consultancy Clarkson’s Capesize (the main ship iron ore) monthly lease rental amount of the data set that year in October, the “two extension” charter a total of 45, accounting for the total capacity market charter ratio of 36.58 percent, both figures are significantly higher than September’s data, in September this year, a total of 26 two-expanding charter, chartering market-the ratio of the total capacity of 29.54%.
Previous years, three major Chinese steel mills and mining enterprise fixed-length agreement on price, many steel companies would choose to charge by the mining charter, and then paid by the mining companies locked CIF, while the “two-continuation” has also been There will not find a buyer of iron ore shipped to China, a precedent for the first. In the first half, BDI index soared 773 points to 4291 points, is also the “two extension” a large number of charter transport iron ore to China, which played an important role in pushing hands.
Present, “two extension” of the iron ore output and sales have actually increased. BHP Billiton’s third quarter report, the company’s iron ore production reached a record 30.1 million tons, a 1% increase over last year, compared with the fourth quarter of fiscal 2009 increased by 11%; while Rio Tinto said in the third quarter report, currently Company iron ore production reached 47,500,000 tons, an increase of 12%.
Present, Brazil to China, sea freight has more than doubled in Western Australia to China, sea freight rise, the Brazilian ore in China’s competitiveness will be greatly reduced. To compensate for the disadvantages of shipping distance, CVRD also through the strengthening of self-built fleet to reduce shipping costs.
Shipping industry not optimistic about prospects for recovery
BDI called a barometer to measure the important index of the world economy.
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