The international shipping market is heavily affected by geopolitical developments. The continuous Houthi attacks, in particular, on commercial vessels in the Red Sea have lengthened voyage distances, a fact that provides strong “support” to freight rates.
Furthermore, according to a recent report by VesselsValue, the bulk carrier market is now in a healthy balance. The “low flight” of fleet renewal, combined with steady demand, have worked accordingly for freight rates throughout 2025.
Simultaneously, despite the impending reduction in iron ore and coal shipments, the lengthening of routes and the increase in tonne-mile demand have given new life to the market. This development is largely due to the new iron ore “line” between Guinea and China, because of the Simandou mine, together with the turmoil in the Red Sea. Of course, the strong bauxite flows between these two countries play an equally crucial role.
Finally, the slowdown of the real estate market in China continues to burden domestic steel demand, as both its production and iron ore imports are continuously decreasing.
