Shipping rates fall for Kiwi exporters
Falling shipping rates are boosting returns on exports and are providing some offset to the high New Zealand dollar. The Baltic Dry Index has fallen 41% compared with this time last month. It is also 39% lower than where it was one year ago. The Baltic Handy Sized Index is falling at a similar rate, seemingly heading back to the record lows of February 2012.Shipping prices look set to continue to fall, with an oversupply of large ships due to reduced global trading. This has led to companies going in to liquidation with the oldest shipping company in the world closing down for good this month. This has been reflected in the cost of shipping lowering by $2/JASm³ since last month, and shipping as a percentage of in-market prices dropping by a percentage point. Shipping costs are now $4-5/JASm³ lower than one year ago.