Bloomberg reported that costs to haul iron ore on Capesize ships, the largest carriers of the commodity, reached the highest in 10 weeks on speculation demand to ship the mineral to China increased.

Figures from the London based Baltic Exchange showed that daily average rates gained 8.7% to USD 5,433, the highest since February 20. That’s the biggest single session increase since March 12.

According to London based accountant Moore Stephens LLP, the current return is 70% of the estimated USD 7,758 a day that Capesizes need to cover operating expenses before paying for fuel.

Mr Dominic Meredith Hardy an analyst at shipbroker Galbraith’s Limited said that “Low port stockpiles and low iron ore prices have spurred some additional Chinese buying of imported iron ore. We’ve seen a number of Capesize iron ore fixtures out of Tubarao in Brazil going to Qingdao in China this week as well as a steady flow from Western Australia. We would expect demand from China to continue as long as prices remain low.”