Iron ore shipments decline amid disruptions
Bimco reports that global iron ore shipments fell 7% year-on-year in early 2025, due to supply disruptions and weak Chinese demand.
Australian shipments dropped by 10%, while Brazilian exports declined by 5%. Despite longer sailing distances from Brazil, tonne-mile demand fell by 6%.
A cyclone forced Australia’s largest iron ore port to close for three days, reducing shipments by 55% year-on-year. A fire at Vale’s port in Tubarão further slowed Brazilian exports.
These disruptions, combined with weak demand, have driven down freight rates, with the Baltic Dry Index averaging 44% lower than last year. The cape-size segment, which moves 75% of iron ore volumes, saw rates drop by 55%. Tariffs on Chinese steel products have increased. “This could cause steel export growth to slow and weaken production by key iron ore importers,” says Filipe Gouveia, a shipping analysis manager at Bimco. (js)