Commodities August 13, 2026 09:33 AM

Dry Bulk Freight Index Falls for Fourth Straight Day as Capesize and Panamax Rates Ease

Main Baltic index slips after a recent peak; capesize earnings fall while supramax posts a small gain

By Marcus Reed
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The Baltic Exchange's main dry bulk freight index declined for a fourth consecutive session on Thursday, led by falls in capesize and panamax rates. The overall index dropped 95 points to 2,844 after reaching a recent high last week. Capesize earnings fell sharply, while panamax eased following a long winning run; supramax showed a modest uptick. Iron ore futures traded in a narrow band amid offsetting pressures from steel mill conditions, freight costs and Chinese steel exports.

Dry Bulk Freight Index Falls for Fourth Straight Day as Capesize and Panamax Rates Ease
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Key Points

  • The Baltic Exchange main dry bulk index fell 95 points, or 3.2%, to 2,844, marking a fourth consecutive session of declines.
  • Capesize rates led losses - the capesize index dropped 243 points (5.2%) to 4,469 and average daily earnings decreased $2,212 to $37,025; these vessels commonly carry about 150,000-ton cargoes like iron ore and coal.
  • Panamax eased 40 points (1.7%) to 2,262 after ending a ten-session winning streak in the prior session, while the supramax segment registered a slight rise.

The Baltic Exchange's dry bulk freight gauge extended a short downtrend on Thursday, recording a fourth straight session of losses as rates for the largest and mid-sized bulk vessels eased.

Index movement

The main Baltic index - which tracks capesize, panamax and supramax vessel rates - fell 95 points, or 3.2%, to 2,844. The index had reached its highest level since June 3 in the prior week before the latest retreat.

Capesize segment

The capesize index led the declines, losing 243 points, or 5.2%, to settle at 4,469. Average daily earnings for capesize vessels - typically the ships that carry about 150,000-ton cargoes such as iron ore and coal - declined by $2,212 to $37,025.

Panamax and supramax

Panamax rates also eased, with the panamax index down 40 points, or 1.7%, to 2,262. That reading followed the segment ending a ten-session winning streak in the previous session. By contrast, the supramax segment posted a slight rise during the session.

Commodity price context

Iron ore futures traded in a relatively narrow range on the same day. Market participants balanced easing losses at steel mills and the supporting effect of firm freight costs against downward pressure from a decline in China’s steel exports.

Market signal and scope

The session highlighted diverging moves across vessel classes: marked weakness in capesize and a notable pause for panamax after a prolonged rally, while supramax showed resilience with a small gain. The narrower swings in iron ore futures reflected offsetting influences from both freight and steel market developments.


Data cited reflects the Baltic Exchange indices and reported average daily earnings for capesize vessels as noted above.

Risks

  • Continued declines in capesize and panamax rates could pressure earnings for operators and affect shipping cost dynamics for bulk commodity shippers - sectors impacted include dry bulk shipping and commodity exporters.
  • Iron ore futures may face volatility because market forces are balancing easing steel mill losses and firm freight with a decline in China’s steel exports, creating uncertainty for iron and steel markets.
  • A pause or reversal after a sustained panamax rally introduces uncertainty for charterers and owners relying on near-term rate momentum in panamax markets.

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