The cost of Hiring Ships is rising because China is shipping more iron ore cargo and Japan is buying huge volumes of Coal for its power plant.
The tight supply of iron ore from India has made Chinese importer to look from other sources. The hiring charges of capesize four type ships have almost tripled. The hire charge for six month of ship with carrying capacity of 1,70K has gone up to US$ 25,000 a day.
Most of the Miners and Traders are interested in hiring ships on long term basis to avoid any freight rise on their business.
The resources in Africa can fulfill the demands of the Asian raw material. The high demand of Coal by India and China also contributed for the rising hire charges. In return, African market has got the increase demand of Rice, Automobiles etc. This can be assumed as opening of new Silk Route of the present century.
Top ten shipping companies are working hard and revising their investment for connecting Africa with Asia. The market clearly show the clear demand as the share prices of the exporters from Africa is showing significant increase.