Handysize Overview
Looking at the index performance relative to last year, a pattern of increased volatility alongside an overall stronger year-on-year level clearly emerges. After a slow start in early 2025, the index experienced a steady recovery through Q2 and stable growth in Q3, peaking close to 900 points between September and October. Although a correction toward the end of the year and a sharp decline in January 2026 mirrored the same trend as the previous year, these movements did not offset the gains accumulated throughout 2025, with current levels still standing well above those recorded in the same period a year ago.
On a year-on-year basis, therefore, the Handysize segment shows an improvement in average freight levels; at the same time, it is clear that the market is currently facing a longer and more pronounced negative trend compared to 2025 over the same period. Geopolitical developments continue to directly affect the dry bulk market.
The increase in bunker prices following the USA–Iran conflict has heavily impacted the trend, making the market even more volatile. Freight rates have generally not yet fully adjusted to higher bunker costs and the logistical challenges associated with sourcing fuel; consequently, time charter equivalent (TCE) earnings have declined on many routes, to the detriment of shipowners, who are facing lower operating margins.
Despite it remaining difficult to glimpse any near-term resolution to the conflict in the Middle East, sentiment in the Handysize market remains relatively positive, with expectations of a rebound in the coming weeks, followed by moderate and stable growth driven by underlying supply-demand fundamentals, which remain broadly stable in contrast to exogenous factors
