Sydney: Prices to ship dry bulk from the Australian port of Newcastle are likely to rise next week, on account of a surge in demand for coal. The port, which is already plagued with bottlenecks, is expected to see increased congestion as heavy rain in Indonesia has forced Asian customers to resort to the spot market for coal supplies.
A number of Indonesian coal suppliers including Thailand based Banpu and Straits Asia have announced reductions in output which analysts expect will be supplemented from Australian sources.
Vessel queues are expected to reach as high as 55 ships by the end of this month, the Hunter Valley Coal Chain Logistics Team told Bloomberg.
Dry bulk prices are already at a historic high fuelled by strong demand from China for both agricultural and industrial imports. Last week the Baltic Dry Index closed at 7,007 points. It currently costs an average of $58,500 per day to hire a Panamax ship. [07/08/07]
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