Raw material freight rates at 11-month low

Raw material freight rates at 11-month low

The shipping rates for coal and iron ore continued falling for a third consecutive week, reaching their lowest level in the past 11 months. The Baltic Dry Index dropped to 3'430 points, its lowest level since July 6, 2004. Freight rates for Capesizes on the Western Australia–China route decreased 3.7% from Friday (May 20) to $12 per metric ton according to the Baltic Exchange. Australia's Newcastle Port, the world's largest coal export port, reported that 18 ships filled with coal left the port during the week ended May 21; 16 vessels had left the port in the previous week. Ten of the ships set off for Japan, and the remaining eight headed for the Philippines, South Korea, Taiwan, Italy and India. Freight costs for Capesizes on between South Africa's Richards Bay Coal Terminal to Europe are around $15.31 per ton. Overall freight rates have slumped 27% in the last two months. The decrease is an indication that there are fewer coal and iron ore export activities worldwide.