Bulk-Ship Rates: Worst Slide in 5 Years

Commodity shipping costs measured by the Baltic Dry Index fell 55 points or 2.3% to 2,351 points, the lowest since October 1. This marks the 25th consecutive drop, the longest losing streak since August 2005. Declines were led by daily rates for panamax ships, the largest to navigate the Panama Canal. They fell 4.4 percent to $21,147 a day.



The bulk-fleet’s carrying capacity will grow 16 percent this year, estimates from Clarkson Research Services show. Demand will increase by the equivalent of 634 vessels while supply will expand by 1,110 ships, it forecast.



Coal and iron ore imports by China fell for two consecutive months, despite China being the world biggest user of the commodities. Combined, the raw materials to make steel or generate power accounted for 54 percent of all dry-bulk goods carried at sea in the first quarter, according to estimates from Drewry Shipping Consultants in London.