The cost of shipping coal, iron ore and other dry-bulk commodities fell from a record after congestion eased at Australia's Newcastle, the world's largest coal export port.
The Baltic Dry Index, a measure of commodity-shipping costs on different routes and ship sizes, fell 0.6 per cent to 6,650 on Wednesday, the first decline in 23 days, according to the Baltic Exchange. The index was led lower by rates for Capesize and Panamax vessels, carriers for most of the world's iron ore and coal cargoes.
Bulk freight rates have risen 49 per cent this year on increasing demand for raw materials from China, the world's biggest consumer of iron ore and coal. That contributed to port congestion in Australia as terminals became unable to handle the volume of goods sold for export. The queue of ships at Newcastle eased to 64 in the week ended May 14 from 70 in the week of April 23, the Newcastle Port Corp said.
'The market is still very firm, there is still a lot of demand behind it,' said Alex Harkess, director of dry cargo chartering at shipbroker Clarkson Asia Pte Ltd in Singapore. 'There's a bit of stock-taking of positions.'
The Baltic Dry Index, a measure of commodity-shipping costs on different routes and ship sizes, fell 0.6 per cent to 6,650 on Wednesday, the first decline in 23 days, according to the Baltic Exchange. The index was led lower by rates for Capesize and Panamax vessels, carriers for most of the world's iron ore and coal cargoes.
Bulk freight rates have risen 49 per cent this year on increasing demand for raw materials from China, the world's biggest consumer of iron ore and coal. That contributed to port congestion in Australia as terminals became unable to handle the volume of goods sold for export. The queue of ships at Newcastle eased to 64 in the week ended May 14 from 70 in the week of April 23, the Newcastle Port Corp said.
'The market is still very firm, there is still a lot of demand behind it,' said Alex Harkess, director of dry cargo chartering at shipbroker Clarkson Asia Pte Ltd in Singapore. 'There's a bit of stock-taking of positions.'