Iron Ore, Freight Markets Adjust to Shifting Trade Dynamics
Global trade is recalibrating under new tariff regimes, sending ripples of volatility through supply chains. The shipping industry, often the first to reflect geopolitical shifts, shows pronounced activity in container and dry bulk segments. China-US routes face declining demand, while intra-ASEAN and ASEAN-India lanes gain traction.
Capesize vessels, the workhorses of iron ore and coal transport, tell a revealing story. Singapore Exchange reported a 46% YoY surge in Capesize contract volumes for April 2025, even as daily settlement prices dropped from $21,500 to $18,600. This divergence underscores steel production sensitivities - particularly in China, the world''s dominant steel exporter now navigating US trade policy headwinds.