Dry bulk near multiyear highs on strong demand and Hormuz crisis side effects
- Capesize index is double the normal level for this time of year; it recently hit its highest point since December 2023
- Supramax index is now strongest since August 2022; panamax index recently reached highest point since July 2022
- Upside from Hormuz crisis (slower speeds, higher coal demand) coincide with rising iron ore and bauxite exports from Atlantic basin
The Hormuz crisis is having an indirect positive effect on dry bulk, which is simultaneously benefiting from non-geopolitical drivers. The future risk to dry bulk, as with other sectors, is that Hormuz disruptions drag on too long, curbing economic growth
