Rising shipping costs for Kiwi exporters
Ongoing unrest in the Middle East has caused a surging oil price which is now being passed on to exporters in the form of rising shipping costs. The halting of exports from Queensland following the floods, saw shipping costs lower in January and through into February as supply outgrew demand. However, export production has resumed in Queensland and demand from New Zealand exporters has shown little sign of abating.
Meanwhile oil prices have surged 17% in the past month. The result is a 25% rise in spot shipping rates of logs to China and Korea from a month ago. Rates to China are now priced at US$41/JASm3 with prospects of rates approaching US$50/JASm3 into April 2011.