SUPPLIERS NEWS ROUNDUP — Sea rates for minerals drop

Ocean shipping rates for mineral commodities declined over the past 18 months, according to a survey by Western Mine Engineering.

Rates for “Cape” vessels, the largest ocean-going transports, with a capacity of 200,000 tonnes, have fallen 34% since January 1998. It now costs up to US$3.44 per tonne to ship coal from the eastern U.S. to northern Europe. Rates for “Panamax” vessels, which have a capacity of 80,000 tonnes, and “Handy” vessels, with a top capacity of 45,000 tonnes, dropped between 11% and 16% over the same period.

Rates declined in 1998 but rebounded slightly this year in tandem with recoveries in Asian economies, the survey notes.