The main reason commodity shipping rates are escalating: not enough bulk ships. The shortage stems from the surging volume of global trade as growth explodes in China, India and other developing nations.
Moreover, even when ships are available to carry the cargo, inadequate port facilities can cause delays, driving up the cost of shipments. At Brazilian ports, ships often wait offshore for as long as two weeks for their turn to load or unload.
Though bulk-shipping costs have been rising for a couple of years, the run-up has intensified over the past year. Still, rather than rely solely on shipping companies, some commodity producers are buying or chartering their own ships.
