Baltic Dry Index fell for the 10th consecutive day

The Baltic Dry Index, a measure of shipping costs for commodities, fell for the 10th consecutive day, the longest losing streak since September because of lack of cargoes, Exim News Service informs.

The index tracking transport costs on international trade routes fell by 118 points, or by 3.5 per cent, to 3,258 points on December 18, according to the Baltic Exchange.

The rates for Capesizes, the largest vessels in the index, dropped by 7.9 per cent to $ 45,458 a day, the steepest slide since September 22.

The rates have more than quadrupled this year with surging iron ore shipments to China, the largest user of the material.

The combined carrying capacity of the dry bulk fleet will expand by 23 per cent next year, according to estimates from Drewry Shipping Consultants. The forecast doesn’t include scrapping or order delays and cancellations.

Daily rents for Capesizes may average $ 37,625 in the first three months of 2010, according to data from Imarex ASA in Oslo. The rates to hire smaller Panamax ships rose by 0.4 per cent to $ 27,674 a day. They may average $ 23,750 during the first quarter of next year, Imarex data showed.

Source: Transport Weekly