Business

Cheaper than Ferraris, ship rates crushed as China slows

China's slowing growth has crushed shipping rates to such an extent that hiring a 1100-foot (335-metre) merchant vessel would set you back less than the price of renting a Ferrari for a day.

Rates for Capesize-class ships plummeted 92 per cent since August to $US1563 ($2260) a day amid slowing growth in China. That's less than a third of the daily rate of about $US6000 to rent a Ferrari F40, the price of which has also fallen slightly in the past few years, according to Nick Hardwick, founder of UK luxury car hire company supercarexperiences.com.

The Baltic Exchange's rates reflect the cost of hiring the vessel but not fuel costs. Ships burn about 35 metric tons a day, implying a cost of about $US4000 at present prices, data compiled by Bloomberg show.

Bloomberg

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