Capesize rates continued to rally as shipping demand improved in both the Pacific and Atlantic basins.
Therefore, the Capesize 5 time charter average increased by $1,734 day-on-day to $12,410 on Friday, after strong afternoon session that pushed out of the tight trading seen in the morning session.
This prompted the Baltic Dry Index to push toward the 1,000 marks, which fell shy at 923 points as of Friday closing.
Good shipping demands out of the Pacific and Atlantic market
The Pacific market remained a hotspot for mining majors in seeking vessels to move iron ore in the key west Australia to China route.
It was heard that Rio Tinto and FMG are working to fix vessels for the west Australia to Qingdao route for end-June laycans, while most ship operators are focusing on the July window.
Thus, the indicative freight heard on the west coast Australia to Qingdao route was in the $6.50-$6.75/wmt range.
The Atlantic market also saw robust shipping demand out of Brazil amid thin tonnage list with freight indicated on the Brazil to China route traded within the $14.50/wmt to $15/wmt range.
Lower bunker sales volume in May
VLSFO prices plunged by $17 to $306/mt at the port of Singapore, following the decline in crude oil movement.
Trade sources are concerned about the second wave of coronavirus that affected oil demands globally. Thus, the Brent crude prices dropped toward to $38 per barrel level, while the WTI slid toward $35 per barrel.
The bearish global oil demand had been reflected in lower marine fuel demand at the port of Singapore during the month of May.
According to Singapore’s Maritime and Port Authority (MPA), the world’s top bunkering hub demand fell to 3.925 million mt in May 2020, down 2% year-on-year and 4.6% on monthly basis.
In the meantime, Singapore also saw its VLSFO and 0.5% sulfur gasoil and diesel sales dropped by 6% month-on-month to 2.728 million mt in May.