Coal is shown at Australia’s Newcastle port, where a queue of vessels awaiting loading have reached record levels. Congestion at the port, the world’s largest coal-export facility, has led experts to believe that transport fees of commodities such as coal and iron ore may extend its gains. --Bloomberg

LONDON—The cost of shipping commodities may stay near a record high because of congestion at ports and as vessels are used on longer-than-normal trade routes, according to Merrill Lynch & Co.

“Demand for both coal and iron ore is on the upswing,” Francisco Blanch, Merrill’s head of global commodity research, said in an e-mailed report last week. “As a result, we also expect continued strength in shipping demand during the coming months.”

The cost of hauling raw materials such as coal and iron ore on capesizes, the largest vessels, rose to a record on April 30 amid soaring demand from Chinese steelmakers.

The London-based Baltic Exchange’s Capesize Index, which measures freight rates, was at 9107 Thursday, from 9127 on April 30.

“A longer supply chain will continue to contribute to tighten shipping markets globally during the next six months” even as the supply of vessels increases, Blanch said. “Widespread bottlenecks and longer trade routes will lend support to dry freight prices.” (Bloomberg)

THE Philippine government has resumed consultations with small and mid-sized freight forwarders which will allow them to prove their inability to comply with higher capitalization requirements.

LONDON—The cost of shipping commodities may stay near a record high because of congestion at ports and as vessels are used on longer-than-normal trade routes, according to Merrill Lynch & Co.

LONDON—TNT NV, Europe’s second-biggest express-delivery service, said first-quarter profit more than doubled after the company sold a freight-management unit to focus on more profitable operations.