The Mining Association of Canada | The Canadian Mining Story: Economic Impacts and Drivers for the Global Energy Transition 2023 20 Cargo ships are expensive and take a long time to build. Shipowners do not typically maintain substantial excess capacity and plan for demand years in advance. This means that small increases in demand at the margins can cause substantial price increases. Increased demand for goods during the Covid-19 pandemic meant that prices increased across the board for shipping. The Baltic Exchange’s dry bulk sea freight index measures the cost of shipping goods around the world. Throughout 2020 and into 2021, bulk freight prices soared to levels not seen in more than a decade. Prices have declined since their high point in 2021 but remain volatile. This means increased uncertainty for heavy users of marine transportation. LOOKING FORWARD Mineral Production Canada’s mineral production industry faces challenges: Canada is no longer a top producer of minerals critical for a low-carbon economy like zinc and nickel, and many other minerals are not even being produced at the level they were a decade ago. A decrease in mineral investment is responsible for part of this decline in production. Canada should be the top jurisdiction in the world to invest and explore. In order to increase mineral production, Canadian governments should undertake comprehensive mineral resource assessments, based on geoscientific studies, in order to understand and incorporate the value of mineral potential into regional assessments and land management decisions. This is particularly true of northern Canada, where the potential for new discoveries is high. Canada will also need to support mineral production by building infrastructure – transportation, energy and communication. Substantial investment in building the 0 1000 2000 3000 4000 5000 6000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 POINTS Figure 9: Baltic Dry Index15 15 Trading Economics. Baltic Exchange Dry Index.