Large bulkers lead dry bulk freight gains as Red Sea diversions tighten supply

On August 4, the Baltic Dry Index rose about 52.8% year-on-year, driven mainly by large Capesize and Panamax bulkers, while smaller vessel segments remain under pressure. The rise reflects increased iron ore and bauxite shipments, limited tonnage and longer routes from Red Sea diversions. Capesize daily earnings reached $39,831; Panamax Atlantic rates climbed to about $23,000. Supramax and Handysize segments remain weak due to ample supply and scarce cargoes. BIMCO projects dry bulk demand growth of 3.5-4.5% in 2026 and 2-3% in 2027 if the Strait of Hormuz reopens by late September. Potential Panama Canal restrictions from El Niño could tighten tonnage supply.