Shipping

The Baltic Dry Index jumped 3.2% to 2,560 points, its highest since December 2023, driven by capesize vessels earning $37,158 daily. The 22% weekly surge in capesize rates reflects fleet tightening from special surveys and longer voyage times, while Red Sea disruptions add 4% to global demand. Forward contracts now price Q2 capesize rates at $32,500 daily, up 67% from July levels, suggesting the rally has legs beyond short-term supply constraints.

Iran established a de facto shipping corridor through territorial waters near Larak Island, with one tanker operator reportedly paying $2 million for IRGC transit approval. Nine ships have used the route requiring visual checks, whilst governments including India, China, and Malaysia negotiate directly with Tehran.