Did you know that international ocean freight carriers from over 40 different countries currently export iron ore to China? In fact, China imports so much iron ore that it has allowed Chinese steel players to negotiate a binding long-term industry wide price agreement, instead of independent contracts with individual steel mills. The number of ocean freight carriers bringing iron ore to China is expected to increase in the future as well according to many industry sources in China and the world. Iron ore from the Indian sub-continent has been the flavour in favour with the Chinese steel mills of late, but this could change in the blink of an eye, since China has negotiated so many agreements for iron ore around the world and would certainly do so again.
There have been clouds of change on the horizon in this affair as significant pressure has been brought to bear against the Chinese to make changes to the current set up. China does need to be wary of burning bridges in this affair and burning bridges really isn’t the Chinese way. The Chinese appear to be more the limp-in kind of player who thinks he can out play you after the flop, the manipulator of emotions who is always seemingly in control of his emotions on the outside. In fact, the Chinese negotiators have apparently been at work spreading a net on the waters to see who they can ensnare and get involved in the debate occurring that’s starting to get louder according to many sources.
At present, the Chinese demand for iron ore is probably too great considering the present growth in China for the Chinese to not listen to the debate and probably make some changes. China also needs the iron ore as much as or maybe more than countries need to find buyers for their iron ore and this is certainly going to make them at least listen to the comments surrounding this affair. In addition, it will take time for ocean freight carriers to get up to speed with their movements of iron ore to China and in the meantime China still needs freight carriers to constantly bring in daily loads of iron ore for business to continue.
Tags: container transport, freight transport, shipping freight