The Baltic Exchange’s dry bulk freight index extended its rally into a third consecutive session on Friday, climbing 4% to 3,628 points, its highest reading since October 2021, according to shipbroker data. The capesize index, which tracks 150,000-ton cargoes such as iron ore and coal, surged 6.4% to a fresh peak in the same session, with gains broad-based across vessel segments as shipping rates rose sharply on strong commodity demand meeting tight vessel supply and longer routes tied to geopolitical disruptions.
Analysts attribute the run-up to a convergence of bad weather crimping the availability of Capesize vessels in the Pacific just as exporters ramp up shipments, alongside firm demand in both the Atlantic and Pacific basins simultaneously. Shipbroker Thurlestone Shipping described the surge as a ‘perfect storm, with vessel supply tightening and demand firing in both basins at the same time.’ Freight rates have climbed roughly 77% so far this year, with typhoons, stronger export flows and Middle East shipping disruptions all cited as factors tightening tonnage availability, and analysts caution the Capesize market could firm further if Pacific weather disruptions and longer-haul export demand persist.
Source: gCaptain / Bloomberg — https://gcaptain.com/dry-bulk-shipping-rates-hit-two-year-high-on-capesize-demand/
Tags: Baltic Dry Index, Capesize, Dry Bulk, Freight Rates
