Why shipping rates have been fallingFriday 13 Jun 2025 Shipping plays a crucial role in taking New Zealand logs to world markets. Shipping typically accounts for 30% to 40% of the total landed cost in China.Since mid-2024 shipping rates have steadily declined. By the end of May, the Baltic Dry Index, which tracks the cost of shipping dry bulk cargo, had fallen by 27%. This decline followed a period of relative stability, which came after years of extreme fluctuations including a record high. So, what’s driving this trend, and could rates move even lower?  In 2024, global dry bulk cargo shipments—including New Zealand logs—reached 5.8 billion tonnes, marking a 12.7% increase from 2019. However, fleet capacity expanded even more, growing by 17.3%. Typically, when the supply of shipping outpaces demand, freight rates tend to fall. Yet, somewhat unexpectedly, the Baltic Dry Index in 2024 was higher than in 2019, suggesting that other factors were also influencing shipping rates. More >> Source & image credit: Alphametrik |
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