Capesize freight rates jumped on strong physical market with huge gains for October contracts due to better shipping outlook.
The Capesize 5 time charter average then hiked up by $3,701 day-on-day to $29,332 on Thursday, due to decent demand in both Atlantic and Pacific basins.
The Baltic Dry Index (BDI) also rose by 8.35% or 144 points day-on-day to 1,869 readings due to strong physical market.
Bullish shipping outlook amid Chinese holidays
Following the weeklong holidays in China, many market participants expects thinner market activities in East Asia, due to the absence of Chinese trade participants.
However, the shipping fundamentals remained robust, especially in the Atlantic market due to slim tonnage list. According to trade sources, the strong freight rates momentum of late Oct laycan may carry over to Nov 1-10 laycan for the Brazil routes.
Meanwhile, the Pacific market is expected to heat up again with all three major miners seeking for vessels to move iron ore cargoes in the west coast Australia to China route.
VLSFO prices jump despite lower crude oil movement
VLSFO prices spiked up by $5.50/mt day-on-day to $339/mt at the port of Singapore, rebounding from previous losses in the week.
The bunker price uptick was contrary to the slump in crude oil prices, caused by the higher output from OPEC +, which grew by 160,000 barrels per day (bpd) in September.
Thus, Brent crude oil prices slid below the $40 per barrel level, while WTI crude prices went lower toward the $37 per barrel level.