Your Economy (No Politics)

[Bullwinkle]

Follow up on BDI...

Bulk freight rates in a slide
Purchasing November 14, 2005

Ocean freight rates for bulk cargos have declined by about 16% in the last few weeks as demand for vessels has been outstripped by supply. However, ship owners reportedly have been holding out against attempts by charterers to secure even lower rates. Eventually, this will impact freight rates for raw material cargoes into the U.S.

The Baltic Exchange’s Capesize Index peaked in August and has been dropping since, according to transportation analysts at BMO Nesbitt Burns in Toronto. According to shipping analysts at Fearnresearch in Oslo, dry bulk market rates into Europe also have fallen. Shipments of 160,000 metric tons of iron ore from Brazil to Dunkirk (France) have come down to $15/metric ton while shipments to the Port of Rotterdam in the Netherlands has dropped to $14.70.

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