Shipping costs may increase by 7.8 pc

The cost of seaborne haulage of goods such as coal and iron ore may reportedly increase by at least 7.8 per cent by the year-end, aided by increased Chinese raw material demand.
The Baltic Dry Index, a measure of commodity-shipping costs, has more than quadrupled this year after collapsing by a record 92 per cent in 2008.
It rose to 3,247 points recently, Exim News Service reports.
The report cited materials demand for Chinese construction and infrastructure projects, rising global steel consumption and lower-than-expected supply of dry bulk carriers.
The Baltic Dry Index may even increase to over 3,500 points before the end of 2009, the report projects.
The dry bulk fleet will swell by 11 per cent this year to a carrying capacity of 489.4-million DWT, according to Drewry Shipping forecasts.

(Source: transport weekly)