Bloomberg reported that Cia Vale do Rio Doce will postpone about 20 iron ore shipments in December 2007 causing shipping rates to slump today.

The reported cite a posting on CVRD website as saying that “The number of ships waiting to load ore at Vale's Ponta da Madeira port near Sao Luis, Brazil, doubled to 14 today from seven a month earlier. Seasonal rains reduced output and protests that blocked a railroad disrupted shipments from Carajas.”

The report also cited Mr Fernando Thompson of CVRD as saying that “Our ports are backed up because output has been delayed and by freeing up ships that would otherwise just sit at anchor. By freeing up ships that would otherwise just sit at anchor, we are increasing the supply of shipping capacity to the world market.''

Speculation earlier today that CVRD canceled cargoes sent shipping costs lower. As per Baltic Exchange, daily rate of hiring Capesize ships, dropped by 3% to USD 178,215. According to Freight Investor Services. FFA contracts for Capesize ships for the first quarter of next year fell to USD 140,000 a day from USD 150,000 a day yesterday.