September 15,
Japanese marine shipper, Nippon Yusen and the world’s No.1 miner BHP Billiton signed a 15-year Iron shipment contract that will use the Baltic Dry Index to set shipping charges.
The contract kicks off next year. The Japanese marine shipper will transport roughly 2.5 million tons of Iron ore a year from Australia to China using 250,000-ton bulk carriers.
Nippon Yusen signed the contract because it expects the shipping market to recover as demand grows for Iron ore from China and other emerging countries.
With this agreement, Nippon Yusen also has long-term contracts with three natural resources majors, including Brazil’s Vale and the Anglo-Australian Rio Tinto Group
Source: Reuters
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