Coal, iron ore cargo rates may rise further
The cost of shipping coal, iron ore and other dry-bulk goods may rise from a record on speculation Japanese utilities will buy more fuel for power plants after an earthquake prompted the closure of several nuclear reactors.
Fuelling demand: More dry-bulk carriers could be needed if Japan boosts import of oil and coal to meet its energy needs after shutting a quake-hit nuclear facility
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, climbed 0.9 per cent to 6720, according to the London-based Baltic Exchange. The measure has more than doubled in the past year.
Tokyo Electric Power Co, Japan's biggest utility, may need to increase reliance on oil, coal and gas-fired power plants after shutting a nuclear facility following a 6.8 magnitude earthquake on July16. The tremor caused radioactive leaks at its Kashiwazaki-Kariwa power plant, the world's biggest.
The Trade Ministry and the Kashiwazaki town officials ordered Tokyo Electric to leave all seven reactors out of operations until safety is ensured.
'Due to nuclear power plant shutdowns in Japan, coal demand could be catalysed,' DnB NOR Markets, a division of DnB NOR Bank ASA, said in its weekly shipping report. 'Combined with a shortage of tonnage in some regions, sentiment is positive.'
Japan, the world's largest importer of coal, consumed 3.5 per cent more of the fuel in June, as warmer weather boosted electricity use and demand from industrial users increased.
The 'extremely profitable operating environment persists' despite port congestion easing, DnB NOR Markets said.
The line of ships waiting to load coal at Australia's Newcastle, the world's biggest export harbour for the fuel, fell to 59 on July23 from 61 a week earlier and 69 the previous week, according to data posted on Newcastle Port Corp's website. Ships waited an average of 25.3 days to load coal, compared with 26 days a week earlier, Newcastle Port said.
The daily rate to hire a Capesize carrier, which typically hauls 175,000 tonnes of goods, rose for a third day. It added US$1,618, or 1.7 per cent, to US$98,324, data from the Baltic Exchange showed.
The Baltic Capesize Index, a measure of rates for the vessels on different routes around the world, climbed 1.6 per cent to 8549 on Tuesday, its third day of gains, according to the Baltic Exchange.
The Baltic Panamax Index, a measure of rates for seven routes of such vessels, increased 0.3 per cent to 7165 on Tuesday, according to the Baltic Exchange. Panamax carriers can move 70,000 tonnes of coal and other dry commodities.
Fuelling demand: More dry-bulk carriers could be needed if Japan boosts import of oil and coal to meet its energy needs after shutting a quake-hit nuclear facility
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, climbed 0.9 per cent to 6720, according to the London-based Baltic Exchange. The measure has more than doubled in the past year.
Tokyo Electric Power Co, Japan's biggest utility, may need to increase reliance on oil, coal and gas-fired power plants after shutting a nuclear facility following a 6.8 magnitude earthquake on July16. The tremor caused radioactive leaks at its Kashiwazaki-Kariwa power plant, the world's biggest.
The Trade Ministry and the Kashiwazaki town officials ordered Tokyo Electric to leave all seven reactors out of operations until safety is ensured.
'Due to nuclear power plant shutdowns in Japan, coal demand could be catalysed,' DnB NOR Markets, a division of DnB NOR Bank ASA, said in its weekly shipping report. 'Combined with a shortage of tonnage in some regions, sentiment is positive.'
Japan, the world's largest importer of coal, consumed 3.5 per cent more of the fuel in June, as warmer weather boosted electricity use and demand from industrial users increased.
The 'extremely profitable operating environment persists' despite port congestion easing, DnB NOR Markets said.
The line of ships waiting to load coal at Australia's Newcastle, the world's biggest export harbour for the fuel, fell to 59 on July23 from 61 a week earlier and 69 the previous week, according to data posted on Newcastle Port Corp's website. Ships waited an average of 25.3 days to load coal, compared with 26 days a week earlier, Newcastle Port said.
The daily rate to hire a Capesize carrier, which typically hauls 175,000 tonnes of goods, rose for a third day. It added US$1,618, or 1.7 per cent, to US$98,324, data from the Baltic Exchange showed.
The Baltic Capesize Index, a measure of rates for the vessels on different routes around the world, climbed 1.6 per cent to 8549 on Tuesday, its third day of gains, according to the Baltic Exchange.
The Baltic Panamax Index, a measure of rates for seven routes of such vessels, increased 0.3 per cent to 7165 on Tuesday, according to the Baltic Exchange. Panamax carriers can move 70,000 tonnes of coal and other dry commodities.