Capesize freight rates rebounded on firmer note due to good momentum from the Pacific market.
The Capesize 5 time charter average went up by $387 day-on-day to $18,305 on Monday, due to good run for September contracts that nearly touched $22,000.
Despite the positivity surrounding Capesize, the Baltic Dry Index (BDI) rose slightly by 0.68 % day-on-day to 1,491 readings.
Decent demand for iron ore and coal
The market optimism for the Pacific market rested on the decent demand for iron ore and coal that saw more active involvement of miners like Rio Tinto and BHP seeking vessels for the key west Australia to China route.
Meanwhile, there were less market enquiry in the Atlantic as trade participants were trying to digest the impact of the recent Vale’s fixing spree that reduced significant number of ballasters.
In the meantime, there was some market concern on Typhoon Bavi that formed off northwestern Pacific Ocean and it is expected to move on northeastward trajectory toward South Korea, affecting shipping activities in its path.
Small dip for bunker prices on lower global demand
VLSFO prices dipped slightly by 50 cents day-on-day to $346.50/mt at the port of Singapore, amid low global bunker demand.
Despite bearish global shipping demand amid the coronavirus pandemic, Sea-Intelligence expects global demand container shipping to down slightly in Q3.
According to the consultancy, the demand for global container volumes is slated to dip only by 0.1% year-on-year in Q3, and this may imply slight dip in bunker demand too as container lines are typically the largest consumers of marine fuel.
The consultancy justified its Q3 prediction due to the shift in consumption pattern during the pandemic that required more stockpiling of various goods to meet higher stay-home spending on consumer goods and home furnishing for work-from-home approach.