Capesize freight rates continued the upward momentum on better market sentiments and improving physical markets.
The Capesize 5 time charter average inched up by $212 day-on-day to $18,749 on Friday, despite some profit-takings during the trading session.
The Baltic Dry Index (BDI) also went up by 1% or 14 points day-on-day to 1,415 readings, given the firmer physical market.
Quiet market after recent rally
The market was muted after the recent flurry of fixing activities, which led some trade participants to expect further weakness in freight rates.
Thus, there was not much of fixtures in both basins except for a handful of tenders. In the Pacific, mining majors like Rio Tinto and FMG were active in the market, seeking vessels to move iron ore for the key west Australia to China route.
However, the shipowners were in a standoff with the charterers for most of the time, and thus the indicative freight heard on the west coast Australia to China route was around $7.60-$7.75/wmt.
Similarly, the Atlantic market was more toned down after the recent rally with indicative freight heard for the Brazil-China route at the range of $17.25-$17.80/wmt.
VLSFO prices rise despite market uncertainty
VLSFO prices went up $2/mt to $340.50/mt at the port of Singapore, amid market uncertainty over oil demand.
Crude oil prices went lower due to market concerns over rising coronavirus cases for the upcoming winter season. Thus, Brent crude prices retreated toward $40 per barrel, while WTI crude prices fell back to $38 per barrel.
Higher US rig counts and rising crude output from Libya also set the market up for a further supply glut amid slowing oil demand.