Bulk freight increases complicate ferrous trade flows

There has been a sharp increase in bulk freight rates from the Eastern ports of North America over the last several weeks. Freight rates have risen $30-$50 on transatlantic cargoes, depending on the final destination. It is particularly affecting Handymax vessels that are widely used to export ferrous scrap.

Over the last month, bulk scrap sales from the US to Turkey have not materialized. Part of the reason, besides comparatively low pricing in Turkey versus US domestic levels, may be the swift increase in freight. However, several other factors have played a role.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40-plus years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.

Stephen Miller

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