Vale dam collapse could hurt Capesize rates

摘要

The recent Vale dam collapse at the Paraopbe complex in Brazil could reduce freight rates, especially the Capesize seg- ment, as demand declines. Iron ore from Brazil is shipped almost exclusively on Cape- sizes, with much of it on long-haul routes to Asia, where the ton-mile impact is “roughly twice as great as typical dry bulk shipping on a per ton basis”, Ben Nolan, an analyst at invest- ment frm Stifel, said in a research note.