Ships idle in Philippine port as global trade slows

SUBIC BAY, Philippines (Reuters) - It's 11 a.m. on a weekday but huge, bulky cargo ships scattered in this Philippine port are quiet and nearly deserted, save for a handful of workers repainting chipped handrails on some vessels.
About 22 ships -- mostly empty cargo vessels -- have anchored in this former U.S. naval base northwest of Manila, some as long as three months running. "We don't usually get ships docked for a prolonged period," said Armand Arreza, administrator at the Subic Bay Metropolitan Authority. "We would usually get a few ships which would be on lay up, but never to the extent that we have about 22 ships and for a prolonged period of time."

SHIPPING RATES FALL

Freight rates for dry bulk ships have plummeted from the highs hit during the commodities bull run last year.
Rates for capesize vessels -- the largest that can ferry iron ore, coal and grains -- on the key route between Brazil and China have fallen to $21 a tonne, down from above $100 a tonne in June last year, according to Reuters data.

LONG-STAYING SHIPS

Costs and security are also factors, with Subic Bay management charging discounted all-in fees -- including bay patrols -- of about $10,000 a month for long-staying ships.