Capesize freight rates continued its bullish run and reached new height due to good shipping fundamentals.
Thus, the Capesize 5 time charter average surged up by $1,227 day-on-day to $34,293 on Monday, touching a new year high amid good shipping demand.
Following the bullish Capesize market, the Baltic Dry Index (BDI) stayed above the 2,000 readings and peaked at one-year high points of 2,071.
More fresh iron ore shipping demand
The Pacific market enjoyed consistent shipping demand that supported firm rates for the west Australia to China route.
Fresh enquiries were heard from major miners like Rio Tinto and FMG to move iron ore cargoes for the west coast Australia-to-Qingdao route with indicative freight at the high- $10s/wmt to $11.50/wmt range.
On the contrary, the Atlantic market was sluggish after the recent rally due to thin tonnage list. Market participants were in the sideline, waiting for clearer market directions before making offers.
It was heard that the trade participants were more interested in seeking smaller-ship size vessels instead of Capesize vessels.
VLSFO prices stabilize on better market sentiment
VLSFO prices stayed flat at $330/mt in the port of Singapore, following the rebound of crude prices on better market sentiment.
Crude oil prices rebounded after U.S. President Donald Trump’s health appears to have improved after testing positive for the coronavirus last week.
As such, Brent crude oil prices went higher toward the $41 per barrel level on Monday, while WTI crude prices rose toward the $39 per barrel level.