- Firm Pacific iron ore demand, tight vessel supply drive hike
- Capesize strength outweighs weakness in Supramax segment
The Baltic Exchange’s Dry Bulk Index (BDI) extended its gains for a fourth consecutive session on 3 July 2026, rising 2.5% (67 points) d-o-d to 2,717 points, supported primarily by robust Capesize earnings amid firm iron ore demand and tightening vessel availability in the Pacific basin.
The continued improvement reflects strengthening sentiment in the larger vessel segment, while Panamax remained stable and Supramax markets stayed under pressure.
Segment-wise performance
- Capesize: The Capesize index surged 4.6% (179 points) d-o-d to 4,100 points, marking the strongest performance among all vessel classes. Market sentiment improved on the back of healthy iron ore cargo volumes from Western Australia and Brazil, with increased chartering activity and a tighter tonnage list in the Pacific supporting freight levels. The Atlantic also remained relatively firm, aided by steady long-haul cargo demand.
- Panamax: The Panamax index edged up 0.4% (8 points) to 2,203 points. Sentiment remained cautiously positive as steady grain and coal shipments provided support. However, limited fresh cargo enquiries and balanced vessel availability capped further upside, resulting in only modest gains.
- Supramax: The Supramax index slipped 0.1% (2 points) to 1,673 points. Market sentiment remained soft due to subdued minor bulk demand, particularly in Asia, while ample vessel supply and limited spot cargoes continued to weigh on earnings despite improvements in the larger vessel segments.
Outlook
The Baltic Dry Index is expected to remain on a firm footing in the near term, supported by sustained strength in the Capesize segment amid healthy iron ore export volumes from Australia and Brazil. While Panamax is likely to remain stable on steady grain and coal demand, weakness in the Supramax market may continue due to subdued minor bulk cargo activity.
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