Dry bulk coal shipping. ImagineStock/Shutterstock
By Katharine Gemmell
May 7, 2026 (Bloomberg) –A 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.
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.
The Capesize market has “strengthened sharply over the past two weeks” 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.
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.
The conflict in the Middle East has also played a part in higher rates. The Iran war has been a “volatility-driven accelerator, amplifying freight market moves and lifting sentiment,” according to shipbroker Ifchor Galbraiths.
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.
© 2026 Bloomberg L.P.
This article contains reporting from Bloomberg, published under license.
Sign up for gCaptain’s newsletter and never miss an update
Essential maritime and offshore news, insights, and updates delivered daily straight to your inbox
Iran said on Wednesday it was reviewing a new U.S. proposal, after sources said Washington and Tehran were closing in on a one-page memorandum to end the war in the Gulf while leaving tricky issues such as Iran's nuclear program for later.
The fragile US-Iran ceasefire held Tuesday morning after a day of clashes involving shipping in the Strait of Hormuz and missile attacks against the United Arab Emirates.
Iran said it had forced a U.S. warship to turn back from entering the Strait of Hormuz on Monday, but a U.S. official denied a report that it had been struck by Iranian missiles, according to an Axios journalist.
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
