Returns for the largest ships hauling iron ore, at a four-month high, rose after Morgan Stanley said Asian demand for the commodity made last week the busiest of the year for the vessels.

Daily earnings for Capesizes climbed 4.8% to USD 8,426, remaining at the highest since May 22, according to the Baltic Exchange. That helped the Baltic Dry Index, a measure of raw materials shipping costs, gain 1.4 per cent to 777, the highest since Aug 9, figures showed.

One-time bookings for Capesizes rose to 36 vessels last week, against 30 the week before and the 2012 average of 21, Fotis Giannakoulis at Morgan Stanley said on Monday.

Owners still face a vessel glut as the fleet grows three times faster than demand for seaborne iron ore, according to Clarkson Research Services.

Source - businesstimes.com.sg

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