Capesize market kept up the upward momentum with better shipping demand in both basins with higher iron ore prices.
Thus, the Capesize 5 time charter average rose by $910 day-on-day to $6,177 on Thursday, after a strong afternoon session that pushed paper market to a day high.
Likewise, the Baltic Dry Index (BDI) also managed to break 600 points barrier, reaching four-week high points of 632 by Thursday, up 6.76% on better freight rates.
More economics reopen from easing of lockdowns
The higher freight rates may be due to market optimism as more and more economies are reopening or easing lockdown measures that lifted shipping demand.
In the Pacific, the mining majors were active in seeking vessels especially for the key west coast Australia to China route.
Thus, the indicative freight heard on the west coast Australia to China route was heard at the range of low-$5s/mt level.
The Atlantic market improved as well with decent flow of cargoes from Brazil, which scaled down the tonnage list and lifted the freight rates for the key Brazil to China route.
Therefore, it was heard that the freight indication for the Brazil-China route was around $10/wmt.
Bunker prices in correction after recent rally
Bunker prices hit a correction after the recent rally as the VLSFO price dropped by $6 to $300/mt at the port of Singapore.
Brent crude prices finally crossed the $40 per barrel level and headed toward $41 per barrel, while the WTI ventured toward $38 per barrel level.
Apparently, there was some market uncertainty on whether OPEC + will extend the output cut as it was heard that some members like Iraq fail to comply with the production cut quota.