Higher iron ore shipments lift long-haul tonne-mile demand
Increased volumes on longer Atlantic routes are absorbing more Capesize capacity per tonne shipped.
Seaborne iron ore volumes on longer-haul Atlantic routes have increased, lifting tonne-mile demand for Capesize tonnage, analysts said.
Because Brazilian and West African cargoes travel considerably further to Asian discharge ports than Australian equivalents, the shift absorbs more vessel capacity for each tonne moved.
Market observers noted that this structural feature has historically supported Capesize earnings during periods of stable overall volumes.
Owners have responded by positioning tonnage westwards, although ballast costs remain a consideration at current bunker levels.
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