Soaring freight costs leaves Asian ferrous trade in disarray

High bulk freight costs are causing severe challenges in shipping ferrous materials this week, sources told Fastmarkets.

Bulk freight rates have increased since the start of the year, underpinned by expensive oil and a lack of available vessels in major global markets, such as China.
Brent crude oil prices were at $67.20 per barrel at the end of trading on March 9, up from $65 per barrel on February 22, which was itself an increase of 74.5% since October 2020.
Freight costs for panamax and supramax vessels - handysize vessels typically with cargo volume of up to 50,000 tonnes - for the route between India and China have soared in recent weeks. The East Coast India-China panamax route recorded by Simpson Spence Young (SSY) hit $21.90 per tonne on March 8, up by 21.7% week on week.

“One of the main reasons why freight rates have gone up sharply for...

Published

Lee Allen

Paul Lim

Alex Theo

March 10, 2021

13:02 GMT

Singapore