Shipping rates expected to stay 'very low'

London: The cost of shipping commodities such as iron ore and coal will stay "very low" this quarter after a record decline last year, said Fearnley Fonds, an investment bank specialised in shipping.

The Baltic Dry Index, a measure of commodity-shipping costs, fell 92 per cent last year as steelmakers cut output because of slumping demand from carmakers and builders.

"We expect dry bulk rates to remain at very low levels in most of the first quarter, before various rescue packages in China and the rest of the world should kick in and help improve parts of the construction industry," analyst Rikard Vabo said in a note.