Shipping: Capesizes drive demand

The third 4th of 2025 ended unexpectedly positively for the adust bulk market, which rebounded strongly aft a slow start astatine the opening of the year and a weak show successful the 4th fourth of 2024.

Freight rates for capesizes and supramaxes were astatine their highest levels, with the erstwhile starring the way thanks to strong Chinese request for robust ore and bauxite.

Capesizes successful 2025 carried 70.9% of China’s bauxite imports, compared to 62.1% successful 2024 – up 14%.

Supramax vessels besides improved their share, expanding from 3% to 3.7% (+23%).

This betterment is not constricted to the freight marketplace but is besides reflected successful the stock markets, with shares of large shipping companies – such arsenic Genco, Safe Bulkers and Star Bulk – signaling a leap owed to improved freight rates and profits successful this sector.

By past Friday, Genco’s stock had strengthened by 31% since the opening of the year, Safe Bulkers by 30% and Star Bulk by 27%.

The three companies adjacent reached caller highs for 2025 earlier this week.

By comparison, shares successful the assemblage person moved astatine a gait astir twice arsenic accelerated arsenic the broader US stock market.

Increase successful freight rates

According to the shipping brokerage Xclusiv Shipbroker, capesize vessels were starring the upward trend successful the third 4th of the year, which recorded the strongest show thanks to their strategic relation successful transporting earthy materials.

These vessels ore the largest and astir strategic cargoes, successful a play when Chinese request remains a steam motor for planetary trade, while their show acts arsenic a barometer for the people of the full sector.

Capesizes led the charter market, with an mean for the third 4th of 2025 astatine 24,223 dollars/day, the strongest show since 2024.

It is noted that charter rates for these vessels successful the 4th fourth of past year were acceptable astatine 18,301 dollars per day.

Other types

Kamsarmaxes followed with an mean charter complaint of 15,888/day, while ultramaxes averaged 16,930/day, the champion level since 2024.

In the 4th fourth of 2025, rates for kamsarmaxes were 10,557/day, while for ultramaxes they were 13,865/day.

Handysizes besides improved, with an mean of 12,818 dollars/day, again signaling the strongest effect since 2024.

In the 4th fourth of 2024, these ships had a regular complaint of 12,244.

These improvements bespeak a operation of healthier enactment successful the Atlantic, steadier request successful the Pacific and strong cargo flows from China, peculiarly successful bauxite and robust ore.