Capesize plunge below smaller rival

Capesize rental costs dropped below those of panamaxes, ships half the size, for the first time since December 2008 because of "sporadic" demand for iron ore.

The daily cost of chartering a capesize plunged 62 per cent since November. Panamax prices dropped 2.7 per cent, reflecting more orders to carry coal and grains. The iron-ore market has seen "sporadic demand" because of prolonged supply talks between mining companies and steelmakers, said Steve Rodley, a director of shipping hedge-fund manager M2M Management.


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