According to China Securities Journal, the sudden suspending of iron ore ship chartering by the Chinese steelmakers resulted in iron ore shipping market nose diving last week with the freights for routes from Brazil and Australia saw largest percentage of drop recently.

According to a report issued by the communication section of Shanghai Shipping Exchange, the speculative charterers had involved in long term time charter and hectically drove up the capesize carrier lease market a week before.

To deal with this, Chinese steelmakers cut off charter business for ore shipping from Australia and Brazil and led to an unexpected slump in the capesize shipping market.

As reported, freight rates from Brazil and Australia to China dropped 14.89% and 31.53% respectively last week, daily rent for capesize carriers in four trip basis time charter routes was USD 180,200 down by 22.97% BCI also dropped by 22.90%.