Australia Iron Ore Shipping: Pilbara, Capesize and China
Western Australia is the largest source of seaborne iron ore. The ore is loaded at a few large ports in the Pilbara and goes mainly to China and to other steel makers in East Asia.
The loading ports
Iron ore is loaded at Port Hedland, Dampier and other ports of the Pilbara coast, fed by long private railways from the mines. The terminals are built for large ships and high loading rates, and a cargo is usually loaded in a day or two. Berth schedules are tight, so ships arrive in a planned window.
Ships
Capesize ships, including the largest ore carriers, are the standard for this trade, and cargoes of well over a hundred thousand tonnes are common. Smaller ships also load at some terminals. Because the ports and the buyers are set up for large ships, charterers and ship operators here often work with contracts of affreightment as well as single voyages.
The route to China
The voyage to north China is the main one, through the Indonesian archipelago or round it, and takes about two weeks. It is shorter than the voyage from Brazil, so Australia competes by distance, while Brazil competes with ore of a different quality. Voyages also go to Japan and Korea, and to other buyers in Asia.
Season and weather
The cyclone season, roughly from the end of the year to the early months of the next, can close the ports for days and delay loading. Ships may be ordered to leave the berth or to wait at sea. A laycan and the terms for weather delay should consider this, and the ship operator should know the procedure of the port.
Ore and loading rules
Iron ore can move when it is wet and, in rare cases, can behave like a liquid. International rules set a limit for moisture and require a certificate from the shipper before loading. The ship should have holds in good order and trim the cargo as the master requires. Ask the shipper for the moisture certificate early.
What to write in your request
The grade and the quantity with a tolerance, the loading port and the berth window, the discharging port and its draft, the laycan, the ship size you accept, and the terms for loading, discharging and demurrage. See the guide on freight and the lane Brazil iron ore for comparison.
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