- Sharp rise in bunker prices impacts freight market
- Charterers delay fixtures amid elevated freight levels
Dry bulk iron ore freight rates increased w-o-w, although trading activity remained relatively slow with limited fixtures concluded at higher levels. Market sentiment stayed cautious amid escalating Middle East tensions, which pushed crude oil and bunker prices higher, increasing vessel operating costs and supporting freight levels. Meanwhile, uncertainty surrounding vessel safety, rising insurance premiums, and potential route disruptions kept some market participants on the sidelines despite the availability of cargoes.
A source commented, “Due to prevailing freight market volatility, we are temporarily holding our offers and closely monitoring market movements.”
“Bunker prices are rising sharply, adding further pressure to the freight market. While cargo availability remains steady, charterers are postponing their laycan nominations as freight levels have increased significantly. Shippers and receivers are currently reluctant to accept such elevated freight costs, resulting in cautious market activity,” another source informed BigMint.
Route-wise updates
Market highlights
- Rising bunker prices: Rising bunker prices amid ongoing geopolitical tensions have supported dry bulk freight rates by increasing vessel operating costs. As fuel expenses rise, shipowners are seeking higher charter rates to offset voyage costs, keeping freight levels firm across key iron ore routes.
- DCE iron ore futures gain w-o-w: Iron ore futures on the Dalian Commodity Exchange increased by around RMB 39.5/t ($4.88/t) w-o-w to RMB 811.5/t ($118.14/t) on 13 March, supported by improved market sentiment after China signaled measures to stabilise the property sector and expectations of stronger steel demand.
- Baltic index drops w-o-w: The Baltic Index fell 166 points w-o-w to 1,972 on 12 March, as weak cargo volumes and softer demand for bulk commodities led to reduced vessel charter activity. Meanwhile, the Capesize Index decreased 230 points to 2,721, while the Supramax Index dropped 102 points to 1,290 amid slower iron ore and minor bulk shipments.
- Brent crude futures rise w-o-w: Brent crude oil futures rose by about $9.94/bbl w-o-w to $98.98/bbl (April 2026 contract) on 13 March, supported by escalating geopolitical tensions and supply disruption concerns in the Middle East, along with expectations of tighter global crude supply and improving demand outlook.
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Outlook
Iron ore freight rates are expected to remain firm in the near term, supported by elevated bunker prices and higher vessel operating costs. However, market volatility and cautious chartering activity may limit strong upward movement. Freight levels will largely depend on cargo demand and developments in the geopolitical situation.
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