The devastating earthquake that rocked China's Sichuan province sent already surging dry bulk shipping rates soaring over the last few days as investors speculated on what the impact will be on transportation companies.

Dahlman Rose analyst Mr Omar Notka said the 2009 contract rate for Capsizes vessels has surged 15%, to more than USD 115,000 per day, in just the past two days. Rates for the vessels on the spot, or un chartered, market soared by USD 7,386 to USD 203,520.

As the production of commodities and the ability to transport them from the affected areas to the Chinese coast is impacted by the earthquake, seaside areas will need more imports since they won’t be able to rely on domestic supplies to satisfy demand.

Mr Jefferies analyst Douglas Mavrinac said that in the longer term, the rebuilding efforts in the affected areas will require construction materials that will need to be shipped in, which will push rates even higher. He added that "This adds a little tightness to an already tight market."

Recently a number of events have caused rates to soar, iron exports from Brazil are returning to normal levels after being curtailed in the first quarter because of price negotiations. The price agreement shows the urgency for steel producers to have a steady supply of ore that they know they can count on, which is good for companies that ship coal, steel and other commodities.