Australian supply chain conditions contributing to increased shipping costs

The Baltic Dry Index, a measure of worldwide shipping costs of various commodities, has risen to a 2011 high on the backend of increased demand to transport coal and grains, according to Bloomberg.

Coal exports are recovering from supply disruptions throughout Australia, coinciding with a seasonal boost of fuel.

The cost or iron ore, the biggest commodity carried by ships in the index, had dropped 12 per cent since February based on prices in China, the report said.

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