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Rates for iron ore-laden ships seen jumping 70% by June

Published Mon, May 12, 2014 · 10:00 PM
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THERE'S so much cheap iron ore flooding into China that rates for the ships that carry it are forecast to jump almost 70 per cent by June, even as the world's second-biggest economy grows at the slowest rate in 24 years.

Bookings of Capesize vessels, most of which haul the steelmaking commodity, surged 47 per cent to 90 a month so far in 2014 compared with a year earlier, Morgan Stanley in New York estimates. Both the expansion and the average are the largest for the time of year since 2009. Freight rates will rise as high as US$20,000 a day by the end of this month from less than US$12,000 now, Arrow Shipbroking Group in London predicts.

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