The cost of hauling iron ore, coal and other dry bulk commodities by sea jumped to a four-month high on strengthening Chinese demand, Bloomberg reports. The Baltic Dry Index advanced 3.6 per cent to 1,515 points, the highest since April, Baltic Exchange data show.
Daily returns on capesizes, the biggest ships in the index, climbed 9.9 per cent to US$16,631, the most since January, according to the London-based bourse, which publishes daily rates for more than 50 maritime routes.
Chinese imports of iron ore, used in steelmaking, advanced 6.8 per cent in July, the most since March, customs data show.
The nation's steel production gained 15 per cent to 59.3 million metric tons that month, accounting for 47 per cent of global output, the World Steel Association reported yesterday.
'The stronger freight rates comes in response to higher interest by charterers in fixing vessels, predominantly into China from West Australia and Brazil,' said Thomas Zwick, an Oslo-based shipping analyst at Lorentzen & Stemoco AS, in a report.
'The number of open positions is starting to narrow, signalling a tighter tonnage balance.'
The Baltic Dry Index is still 45 per cent lower than a year ago after the global fleet expanded faster than demand. Orders for new capesizes at ship yards are equal to 33 per cent of existing capacity, according to data from Redhill, England-based IHS Fairplay.
'The major iron ore miners were all very active taking available ships,' said Natasha Boyden, an analyst at Cantor Fitzgerald LP in New York, in a report.
'Fundamentally, the increase in demand could be partly driven by surging domestic inflation in China making the high-quality, imported iron ore more attractive.
Daily returns on capesizes, the biggest ships in the index, climbed 9.9 per cent to US$16,631, the most since January, according to the London-based bourse, which publishes daily rates for more than 50 maritime routes.
Chinese imports of iron ore, used in steelmaking, advanced 6.8 per cent in July, the most since March, customs data show.
The nation's steel production gained 15 per cent to 59.3 million metric tons that month, accounting for 47 per cent of global output, the World Steel Association reported yesterday.
'The stronger freight rates comes in response to higher interest by charterers in fixing vessels, predominantly into China from West Australia and Brazil,' said Thomas Zwick, an Oslo-based shipping analyst at Lorentzen & Stemoco AS, in a report.
'The number of open positions is starting to narrow, signalling a tighter tonnage balance.'
The Baltic Dry Index is still 45 per cent lower than a year ago after the global fleet expanded faster than demand. Orders for new capesizes at ship yards are equal to 33 per cent of existing capacity, according to data from Redhill, England-based IHS Fairplay.
'The major iron ore miners were all very active taking available ships,' said Natasha Boyden, an analyst at Cantor Fitzgerald LP in New York, in a report.
'Fundamentally, the increase in demand could be partly driven by surging domestic inflation in China making the high-quality, imported iron ore more attractive.