Platts reported that freight rates for iron ore cargoes originating in the Atlantic have fallen sharply this week as more ships have become available globally on the spot market that were previously tied up in port congestion.

The latest business has seen the key Brazil to China iron ore rate fall close to the USD 77 per tonne mark, having started the week at around USD 80 to USD 82 per tonne. This is down sharply from all time highs of just over USD 100 per tonne seen in the first half of November 2007.

Ship brokers attribute the sharp fall in freight rates to an easing of port congestion, which has freed a large number of ships that were previously tied up in port congestion. The worst congestion was on the east coast of Australia's major coal export terminals, where the queue for ships awaiting loading berths in Newcastle, New South Wales, peaked at 37 vessels, waiting an average of 22 days in early October 2007.