Today I want to give good news about shipping. With a renewed  Chinese demand for iron ore and coal has pushed up charter hire as much 3 times in past week. That is abnormal recovery in charter hire after a continuous slum for six months.

It is a good sign and may encourage ship owners to look into shipping business with positive outlook. Revival in charter hire rate has benefited large vessels the most. Some operators said that at least now they are able to recover their operating comparing to running in loss earlier. 

The charter hire rate increase did not affect smaller vessel equally, which generally attracts general cargoes. 

Average spot rates, or the cost of carrying a single cargo immediately, finished the week at $8,261 a day for Cape sizes, according to figures from Pareto Dry Cargo, an Oslo ship broker. The previous week’s average was $2,763, one of the lowest yet seen. Pareto reported a long-term charter of a Cape size ship at $17,500 a day for a year, more than the daily basic operating costs of such a ship. Long-term charter rates are, unusually, higher than those in the spot market because of expectations that the spot market will recover.

(Source: Shiptalk newsletter of 15th Dec 2008)

This would probably a sign of the start shipping market recovery and shipping community earnestly hope for same.