Freight rates for iron ore in May 2026 fluctuate in a limited range.
According to Kallanish, on the reference route Tubarao (Brazil) — Qingdao (China) on May 22, they amounted to $36.15/ton, which is 2% lower than a week earlier ($37/ton). At the end of last month (April 24), the price was $33/ton.
At the same time, the rates on the Western Australia—Qingdao route were $15.25/ton, which is slightly higher than last week's level ($15.45/ton). In a month, since April 24, they have risen by 17.3%.
The general Baltic Dry Index (BDI), which takes into account rates for Capesize, Panamax and Supramax class vessels, rose to 2,991 on May 22, interrupting five consecutive sessions of decline, which was facilitated by an increase in rates in the Capesize segment. However, compared to the previous week, Reuters notes, it lost 5%, which is the worst weekly performance since the beginning of March.
The Capesize index, which tracks 150 thousand tons of iron ore and coal. T, on May 22, increased by 120 points, or 2.5% compared to the previous session, to 4954. It has dropped by about 4.2% in a week. The average daily earnings of ships in this segment increased by $1,093, to $41,428.
The Panamax index, which tracks coal and grain shipments from 60 thousand tons. Tons up to 70 thousand . T, on the same date, fell by 53 points, or 2.3% compared to the previous session, a decrease of almost 12% compared to the previous week. The average daily earnings of ships of this class decreased by $481, to $20,004.
In the first quarter, according to the Hellenic Shipping News report, the bulk carrier market did not experience the typical seasonal decline for this period. The average daily rate for Capesize for the period was about $23,000, which is about 75% higher than last year, due to high import demand from China.
The gradual increase in the capacity of the Simandu mine in Guinea, from which shipments travel to China over much longer distances, will provide a significant increase in tonne-miles in the second quarter.
The fact that the dry cargo market entered the second quarter significantly stronger than expected was also noted in the report by fchor Galbraiths, released in early May.
This was due to the growth of the Capesize segment, steady demand for iron ore, and an increase in Atlantic tonne miles. According to IG, the market is currently characterized by volatility and, at the same time, a reduction in the actual supply of ships amid uncertainty caused by the conflict in the Middle East, which gives shipowners the opportunity to maintain freight rates.
The main driver for Capesize remains the transportation of iron ore (fairly stable Australian and Brazilian supplies, increased activity of Simandu). Chinese demand for these raw materials may provide this segment with a more solid foundation by the end of this year.
