Capsize iron ore rates dip in absence of spot cargoes

Platts reported that capsize spot iron ore freight rates took a further dip last week in the absence of spot cargoes.

Having survived the traditionally slack summer months with freight rates at historically high levels, ship owners are seeing rates come under some downward pressure at a time of year when the market normally makes its seasonal upturn, heading into the fourth quarter. However, since the middle of August 2008, the market has remained somewhat lackluster, against a background of softening steel prices around the world. Most of the erosion has been in the Atlantic market, where the key Brazil or China iron ore route has been fixed at under USD 70 per tonne.STX Pan Ocean reportedly fixed a 160,000 tonnes iron ore stem from Tubarao to Qingdao at USD 68 per tonne, loading September 20th 2008 at USD 68 per tonne on the 2006 built Cape Med. The same charterer also fixed a 160,000 tonnes cargo on the same route, also September 20th 2008 loading, at USD 70 per tonne with an undisclosed ship owner.But some brokers said that the USD 70 per tonne fixture was not concluded and ended up being refixed at the lower rate. This is down from previous comparable business concluded at USD 72 per tonne on August 22nd 2008.On the Western Australia to China iron ore route rates have also slipped slightly. STX Pan Ocean reportedly fixed a 145,000 tonnes cargo from Port Hedland to Qingdao at USD 27.50 per tonne for a September 15th 2008 loading on the 1999 built C Koreana. This is down from previous comparable business of around USD 29 to USD 31 per tonne, but basis the more standard 160,000 tonnes cargo size.Meanwhile, a backhaul Western Australia to Northern Europe iron ore fixture of 160,000 tonnes was heard at USD 37.50 per tonne, which is down by around USD 10 to USD 12 per tonne over previous comparable business.
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