Why are sea transport costs so high to China in the books when the price of hiring dry bulk carriers is at a record low. The cost of a dry bulk carrier per day the average size is about US$5000 at the moment which is just five percent what it was at the peak a while back. It costs about $8000 a day to run such a ship usually and we all are aware probably the cost of fuel has fallen dramatically. Transport costs should be comparative peanuts at the moment, for iron ore.
It looks like the mug miners have to pay the freight and the Chinese just buy it off the wharf in Dalian?
The situation with tankers is the opposite with China buying flat out at these prices to bolster up its "strategic reserve"getting ready for a war?
When you consider the on the ship cost is A$35 and the landed cost quoted is A$57 something does not quite add up here. Are they stuck with some high priced long term contract? Its the freight figure that is the elephant in the room surely.
Why isn't the CEO buying???, page-39
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