Iron Ore Ship Rates May Have Bottomed as Demand Gains, DNB Says
February 08, 2012, 12:13 AM ESTBy Alaric Nightingale
Feb. 7 (Bloomberg) -- Freight rates for iron ore-carrying capesize ships may have bottomed because demand for the vessels is strengthening, Norwegian bank DNB Bank ASA said.
“The iron-ore majors came into the market yesterday and with more fresh cargo, it’s hard to ignore the feeling that the market has bottomed, which will increase owners’ bargaining power,” Nicolay Dyvik, an analyst at the DNB Equity Research, wrote in an e-mailed note today.
Daily rates for the vessels slid for a 30th session yesterday, declining 0.7 percent to $5,214, according to the Baltic Exchange in London.
--Editors: John Deane, Claudia Carpenter
To contact the reporter on this story: Alaric Nightingale in London at anightingal1@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
