Baltic Dry Index Hits Five-Year High, Up 13.9% on the Week Amid Strong Iron Ore and Coal Demand

The Baltic Dry Index, the global benchmark for dry bulk shipping costs, extended its rally for a third straight session on Friday, September 4, 2026 (13 Shahrivar 1405), rising 4 percent from the previous day to 3,628 points, its highest level since October 2021. Per market data, the index has gained 13.9 percent over the past week. Its capesize sub-index, which mainly covers vessels carrying up to 150,000 tonnes of iron ore or coal, jumped 6.4 percent to 6,427 points, its highest since December 2023.

The report attributed the surge in shipping rates to strong demand for commodities such as iron ore and coal, combined with tight vessel supply and longer shipping routes caused by geopolitical disruptions. The Baltic Dry Index's all time high remains 11,793 points, set in May 2008. Higher dry bulk shipping costs also affect the cost of exporting metal and mining products, including Iranian steel.