Iron Ore Shipments Fall 7%
Global iron ore shipments have fallen 7% y/y, during the first seven weeks of 2025, amid supply disruptions and weak Chinese import demand. Australian cargoes have fared the worst, down 10% y/y while shipments from Brazil have weakened by 5% y/y. “The comparatively stronger Brazilian shipments are boosting average sailing distances, but tonne mile demand is nonetheless estimated to have taken a 6% fall y/y,” says Filipe Gouveia, Shipping Analysis Manager at BIMCO. The weakness of iron ore shipments this year has intensified this past week in particular. A cyclone forced Australia’s largest iron ore port to close for three days, causing Australian shipments to drop 55% y/y. Brazilian shipments have also slowed, partly due to a fire in Vale’s facilities in port Tubarão. During the previous weeks, global iron ore shipments fell 1% y/y. “The weakening in iron ore shipments has contributed to a slump in freight rates. So far this year, the Baltic Dry Index (BDI) has on average been down 44% y/y. Furthermore, the capesize segment has performed even worse, with rates taking a 55% y/y hit,” says Gouveia. Iron ore is the largest dry…