Commodity shipping costs measured by the Baltic Dry Index extended their longest losing streak in almost five years as an expanding fleet overwhelmed weakening demand for grain, coal and ore carriers.

The index fell 41 points, or 1.7 percent, to 2,406 points, the lowest since October 2009, according to the Baltic Exchange in London. That’s the 24th consecutive drop, the longest losing streak since August 2005.

Chinese steelmakers are the biggest consumers of iron ore, more of which is transported at sea than any other dry-bulk commodity. Dry-bulk demand is also leveling off because of China’s moves to cool its property market.

From Bloomberg, June 30, 2010