Escalatory and retaliatory trade moves kept key shipping routes and commodity markets on edge this week, with freight rates surging sharply. The Baltic Exchange Dry Index (BDI) climbed 7.4% overall, according to cash buyer GMS.
Capesize, Panamax, and Supramax indices all strengthened in tandem, rising 1.0%, 0.4%, and 0.5% respectively. Crude oil prices also inched up, closing the week at USD 62.74 per barrel against USD 62.14 at the start.
“Mixed in with the craziness of tariffs is the growing and murky collection of sanctioned units that continue to trickle into the markets along with legitimate ones,” GMS noted.
The week also marked a surprising influx of tonnage to the Indian subcontinent, with more than 155,000 LDT—including several LNG carriers—heading for recycling beaches, predominantly in India and to a lesser extent in Bangladesh. “Certainly an ‘ice-cube down the back’ kind of flashback moment to the glorious days of loaded recycling beaches,” GMS observed.
In South Asia, Bangladesh’s ship recycling sector stood out with progress on Hong Kong Convention approvals, with 18 yards now fully accredited to global standards. Pakistan, however, continues to lag.
Currency depreciation compounded market pressures, particularly in India, where the rupee tumbled alongside other recycling nation currencies, which weakened by double digits against the U.S. dollar. Steel plate prices remained flat across all markets, even in China, as tariff speculation loomed.