Dry bulk coal shipping. ImagineStock\/Shutterstock<\/p>\n
Dry-Bulk\u00a0Shipping Rates Hit Two-Year High on Capesize Demand<\/p>\n
May 7, 2026 (Bloomberg) \u2013A key measure of bulk-shipping rates jumped to the highest level since December 2023, driven by rising demand for Capesize vessels along with tightening supply of ships that haul bulk commodities.<\/p>\n
The Baltic Dry Index surged 5.6% to 2,991 points on Wednesday, extending gains for a fourth session. The gauge tracks freight rates for Capesize, Panamax, and Supramax ships transporting raw materials such as iron ore, coal and grain.<\/p>\n
The Capesize market has \u201cstrengthened sharply over the past two weeks\u201d on tightening ship availability in the Pacific, disruptions to iron ore exports from Brazil, and hedging of future freight rates, said Pranay Shukla, the head of dry bulk freight and commodities research at S&P Global Energy.<\/p>\n
Strong bulk commodity exports in April are expected to continue this month and into June, according to data from S&P Global Energy. The Capesize segment on the Baltic Dry Index accounts for about 40% of the gauge, and is the section most exposed to iron ore, used to make steel.<\/p>\n
The conflict in the Middle East has also played a part in higher rates. The Iran war has been a \u201cvolatility-driven accelerator, amplifying freight market moves and lifting sentiment,\u201d according to shipbroker Ifchor Galbraiths.<\/p>\n
Iron ore futures in Singapore were little changed at $110.70 a ton as of 11:49 a.m. local time after rising 1.8% in the previous session to settle at the highest since October 2024. The move came as China returned from a holiday.<\/p>\n
\u00a9\u00a02026\u00a0Bloomberg L.P.<\/p>\n