Bloomberg reported that Baltic Dry Index fell for a fifth consecutive week as easing port congestion and fleet expansion pressured rates to hire capsize class ships. The index tracking transport costs on international trade dropped 0.2% this week to 2,415 points, for a 28% decline in 5 weeks. Rates to hire capsize class vessels slid 8.5% this week to USD 34,647 a day. The vessels typically haul coal and iron ore.

Mr Derek Langston director at Simpson Spence & Young Limited said that "Capes are being affected by increased fleet supply." He added that the number of ships waiting at Chinese ports has dropped to 30 from a June peak of 88, while newly built or converted vessels are being delivered.

Mr Langston said that smaller Panamax class ships that compete with capsize for cargoes rose by 15% this week to USD 19,921 a day. The vessels are being hired to haul minerals on the Atlantic Ocean and grains from the US Gulf.

According to estimates from Drewry Shipping Consultants in London, the fleet of capsize ships with carrying capacity of 110,000 to 200,000 deadweight tonnes capacity will grow by 20% in 2009. The figures don't include scrapping, delays or cancellations.

(Sourced from www.bloomberg.net)