NEW YORK ( TheStreet) -- Dry-bulk shipping shares were soaring Tuesday as month-and-a-half-long demand for capesize dry-bulk shipping vessels continued on a spike in global demand for coal and a China's appetite for iron ore.
Capesize vessel rates have jumped to $28,650 a day from the Aug. 15 price of $11,000 a day, Jeffrey Landsberg, founder of Commodore Research, told TheStreet. That's a 160.1% increase in six weeks.
High volume of Chinese steel-making has driven the country's demand for greater amounts of iron ore, the majority of which has been taken from Australia, Brazil and, to a lesser extent, India. India had played a larger role in iron ore mining, but
Though Karnataka is a major port for Panamax vessels and doesn't rely heavily on Capesize business, Landsberg said that Panamax, Suezmax and other smaller vessels have also seen an uptick in daily rates.Excel Maritime (EXM - Get Report) -- which rose 11%, or 23 cents to $2.33 a share, leading stocks in the industry -- owns and operates seven capesize ships, which is a solid number when compared to its larger competitors DryShips (DRYS - Get Report) (eight vessels) and Genco Shipping & Trading (GNK - Get Report) (nine vessels). "I think the shippers are moving on the back of a good tape today