Consumers of basic commodities face some of the highest ever costs to ship goods after a combination of port delays, strong demand and ship shortages last week sent bulk shipping rates back close to record levels.

The increases – an almost 80 per cent jump in the past year – come after iron ore producers in Brazil won large price increases from steelmakers, encouraging them to make more ore available for shipment.

Rates for larger ships such as the so-called Capesizes, used only to carry the iron ore and coal demanded by the steel industry, had gone up disproportionately, analysts pointed out.

“This is steel,” said Martin Stopford, research director at London-based Clarkson shipbrokers. ... Read full article