Commodity Shipment Rates Falling, Journal Reports

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hipping rates for major commodities such as coal, iron ore and grain have fallen almost 25% in the past six weeks, the Wall Street Journal reported Monday.

Surging demand and a shortage of ships had raised rates late last year but since then a cutback in iron ore shipments out of China and other commodities have slowed demand, the paper said.

Slower growth in the world economy and U.S. demand have also been factors, the Journal reported.

More than half of so-called dry bulk cargo is steel-related, either raw materials or final products, the paper said, so a slowdown in that sector can have a big impact on overall shipping rates.

The paper said that container shipping is also softening slightly, with demand growth in Europe for Asian goods projected to fall to 7% to 8% this year, from 15%.