Capsize freight rates on Brazil China route have nosedived
It is reported that, following the steep fall in Chinese demand for iron ore, capsize freight rates on the key route between Brazil and China have reportedly nosedived to USD 49.29 a tonne for the first time in 14 months.
The rate was USD 100 in June 2008. A broker said that none of the Vale"s ships to China has been cancelled so far. He added that but the market may remain like this until the Chinese increase their demand.
The rates of capsize freight between Brazil and China had doubled, halved, doubled and now halved again in just over 12 months, as congestion at loading and unloading ports has contributed to the already high volatility.