Bloomberg quoted Clarkson Plc, the world's largest shipbroker, saying that Australia is poised to overtake Brazil as a source of demand growth for ships as the nation's iron ore supply to China expands faster than the Latin American country's.
Mr Sarah Holden analyst of Clarkson said that while demand growth on the Brazil to China trade route exceeded that of Australia to China by 48% between 2007 and 2011, that is now reversing. The note was referring to tonne mile demand, which multiplies cargo volumes by distances. China is the biggest importer of the raw material used to make steel.
Mr Holden said that "Unless there is a greater that expected rise in Brazil's long haul exports, Australia is likely to contribute the most to trade growth in terms of both tons and ton-miles in the next few years."
According to Clarkson, Australia is the world's largest iron ore exporter by volume while Brazil, the second biggest, creates greater demand for shipping because of the distances involved in supplying China. Smaller suppliers including Liberia, Peru and Sierra Leone increased their share of the global market to 25% from 16% in early 2009.