Brazil/China Iron Ore Freight Rates (US$/M.T.)Date High LowJan...

Brazil/China Iron Ore Freight Rates (US$/M.T.)
Date High Low
Jan 2007 $36.64 $33.64
June 2007 $52.34 $ 40.50
Dec 2007 $91.85 $ 81.09
Mar 2008 $ 76.54 $ 64.00
July 2008 $89.00 $ 84.19
Sept 2008 $68.71 $ 33.52
Oct 2008 $31.63 $ 10.66
Source: Shipping Research/Mitsui O.S.K. Lines
These shipping rates show freight rates back to Jan 2007 levels, so even leaving out falls in spot IO prices, the Chinese are getting their iron ore a lot cheaper, if they want to buy it. Shipping rates looked to have peaked in July 2008.
The Chinese would be aware shipping rates can't go much lower & at some point will take advantage of these low rates.
Remember shipping costs are a large component in the cost of iron ore.
Regards
Buffett