Study on the risk assessment of iron ore shipping channel in China

As the world's largest steel producer and consumer countries, it is particularly important for China to ensure the supply of raw materials for steel. This paper analyzed the risk for shipping channel of iron ore in China. The risks were mainly affected by five factors and they include the ships scale-up, the stability of import, the domestic carriers share, the terminal traffic capacity, and the force majeure. Then the paper used risk assessment model based on maximum entropy model to study the overall risk of the iron ore shipping channel. The result shows that the risk level was relatively high and conforms to the actual situation. The paper also provides a basis for decision making to the iron ore industry of China.