Capesize freight rates rallied further due to better shipping demand in the physical market.
The Capesize 5 time charter average then rose $205 day-on-day to $15,942 on Tuesday, following the improvement in market sentiment.
The Baltic Dry Index (BDI) thus rose slightly by 0.55% or 7 points day-on-day to 1,282 readings on the active shipping market.
Robust shipping demand in the Pacific
The shipping demand remained strong in the Pacific with healthy cargo list in moving iron ore and coals for the Australia to China route.
Rio Tinto, BHP and FMG remained active at the market seeking for vessels that reduced the tonnage list, after a new round of fixtures.
However, the freight rates remained rather flattish despite the recent bookings and the indicative freight heard on the west coast Australia to Qingdao route was in the $7.30/wmt to $7.45/wmt range.
Meanwhile, a standoff between shipowners and charterers continued in the Atlantic market with some fixtures heard for Brazilian miner, CSN. Apparently, the miner had fixed around two vessels for the Brazil to China route in late Sep laycan at below the $16/wmt level.
Higher VLSFO prices amid crude supply disruption
VLSFO prices went up by $2/mt day-on-day to $315.50/mt in the port of Singapore, due to positive crude price movements.
Hurricane Sally had disrupted US offshore production in the Gulf of Mexico with over a quarter of oil production being suspended and affected around 28% of natural-gas production.
The disrupted supply then pushed up the Brent Crude oil price toward $41 per barrel, while WTI crude hiked sharply toward $39 per barrel level.
Meanwhile, there was also some market optimism in the market as trading firm, Vitol expects the oil demand in transportation sectors to recover back to pre-Covid 19 level by the Q4 2021, except for jet fuel.