Monday, September 20, 2021

Aussie resource players slapped with higher shipping rates from WA and African ports - Stockhead

Last updated Friday, September 10, 2021 02:03 ET , Source: NewsService


The benchmark measure for global commodity shipping costs – the Baltic Dry Index – hit an 11-year high of 4,235 on 27 August.

And while it’s currently sitting at 3,643, that still up from 2,088 on 8 April.

Not to mention that container shipping rates have quadrupled since the start of the year.

The Drewry World Container Index for Sept 9 states the weighted average freight cost of a 40-foot container on major trans-ocean trading routes rose 1.0% to $10,083.84.

And according to Argus Media, Australian resource companies are feeling the pressure from commodity exports from Aussie and African operations due to port congestion, delays and vessel shortage.

WA and African ports worst hit

With just about every container ship in the world out on the high seas, shipping lanes and ports are facing unprecedented levels of delays and congestion – and many ports are being impacted by labour shortages.

Companies exporting copper concentrate from the Western Australian ports of Geraldton and Port Hedland, and mineral sands from Mombasa in Kenya are among the worst hit.

Argus said Base Resources (ASX:BSE) – which owns the Kwale mineral sands project in Kenya, and exports zircon and rutile from Mombasa – has seen a $52/tonne increase in costs.

The company’s paying $90/tonne, up from $28/tonne for a 55,000-tonne vessel shipping ilmenite to China last year.

Plus, freight rates for Sandfire Resources’ (ASX:SFR) copper concentrate exports to Asia and Europe have also increased.


Read Full Story: https://stockhead.com.au/resources/aussie-resource-players-slapped-with-higher-shipping-rates-from-wa-and-african-ports/

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