Risk Management in iron Ore Sea Transportation in view of Characteristics and Changes in the International Shipping Market

摘要

Iron ore is a basic raw material heavy in demand for the world iron and steel industry. The long distance between iron ore sources and steel product producing areas makes ocean shipping of iron ore an indispensable link in iron and steel production in the world. According to statistics, shipment of iron ore last year was about 450 million tons while iron ore consumption in the same year was 1.1 billion tons. That means 40% of total iron ore required for iron and steel making was ocean shipped to iron and steel plants. So all those iron and steel makers, which very much rely on imported iron ore, have deep concern for international ocean shipping market. This paper, based on analysis of characteristics of international ocean shipping market, expounds how iron ore goods owners or dealers should understand and make use of these characteristics to control risks in related links in ocean shipping.