Rio Tinto Group, the world’s second-largest iron-ore supplier, said the global slowdown in demand won’t hinder its $315-million purchase of three ships. “The very large ore carriers we have on order will deliver from late 2012,” Amanda Buckley, spokeswoman for the London-based company, said on Wednesday in an e-mail. “We are committed to these vessels because they fell below predetermined cost levels and are a good fit with marketing strategy. Nothing has changed from these perspectives.”
Commodity shipping rates have plunged, prompting companies to idle ships. At least 20 percent of the vessels commonly hired to haul coal and ore are sitting empty as mills cut output and dwindling trade credit halts deliveries, Lorentzen & Stemoco A/S shipbroker Kjetil Sjuve said on November 7.
Rio agreed in January to pay for three 250,000-metric-ton ships being built by Namura Shipbuilding Co. It has an option for two more vessels of a similar size and a decision won’t be made until the last quarter of 2009, Buckley said.
Global ship orders tumbled 90 percent last month, Richard Sadler, chief executive officer of Lloyd’s Register, said on November 6. The full-year order tally will likely fall more than the 15 percent previously predicted, he said.
Capesizes, the second-largest commodity transporters after very large ore carriers, are now available for $4,193, according to the Baltic Exchange in London. That’s below the cost of paying for crew, insurance, maintenance and lubricants.
Commodity shipping rates have plunged, prompting companies to idle ships. At least 20 percent of the vessels commonly hired to haul coal and ore are sitting empty as mills cut output and dwindling trade credit halts deliveries, Lorentzen & Stemoco A/S shipbroker Kjetil Sjuve said on November 7.
Rio agreed in January to pay for three 250,000-metric-ton ships being built by Namura Shipbuilding Co. It has an option for two more vessels of a similar size and a decision won’t be made until the last quarter of 2009, Buckley said.
Global ship orders tumbled 90 percent last month, Richard Sadler, chief executive officer of Lloyd’s Register, said on November 6. The full-year order tally will likely fall more than the 15 percent previously predicted, he said.
Capesizes, the second-largest commodity transporters after very large ore carriers, are now available for $4,193, according to the Baltic Exchange in London. That’s below the cost of paying for crew, insurance, maintenance and lubricants.