Coal shipping rates rise on port congestion in Australia and Brazil
The cost of shipping coal, iron ore and other dry bulk commodities rose to a record for an eighth day as port congestion in Brazil and Australia kept vessels in those countries' ports idle, Bloomberg reported Thursday.
'Bulk freight rates have risen 47 percent this year to a record on increasing demand for raw materials from China, the world's biggest consumer of iron ore and coal,' the story said. 'That contributed to port congestion in Australia as terminals became unable to handle the volume of goods sold for export.'
The Bloomberg report said that 70 vessels were left to wait at Newcastle, the world's largest coal export terminal, for the week of May 7.
'Congestion problems in Australia are slowly improving,' Ralph Leszczynski, research manager at Genoa, Italy-based Banchero Costa and Co SpA, told Bloomberg. 'There are reportedly now increasing problems at Brazilian export ports.'
Coal shipping rates rise on port congestion in Australia and Brazil
