China Merchants plans 25-year Simandou iron ore deal amid stronger capesize rate outlook
- CMES’ dry bulk unit Hong Kong Ming Wah Shipping plans to sign a 25-year contract to transport Simandou iron ore to China
- Six newly ordered very large ore carriers are expected to serve the long-term agreement
- The longer Guinea-China route could boost capesize utilisation and freight rates as Simandou exports ramp up
Longer ore voyages from Simandou are expected to tie up more capesizes and increase tonne-mile demand
