Capesize freight rates continued its bullish run, drawing supports from the better shipping demand in both basins.
The Capesize 5 time charter average then rose by $3,376 day-on-day to $24,507 on Monday, after heavy volume changed hands in the paper market.
The Baltic Dry Index (BDI) also followed the Capeszie rally and hiked up by 9.65% or 155 points to 1,761 readings.
Thinner tonnage due to bad weather and few ballasters
Pacific freight rates improved as many vessels were affected by the bad weather off China, that resulted in some ships being stuck at ports.
In the meantime, the major miners like the Rio Tinto and BHP were also active in seeking vessels to move iron ore in the key route of west Australia to China route at indicative freight rates around $9.65-$9.95/wmt.
The Atlantic also experienced thinner tonnage, in view of limited fresh ballasters, which strengthened freight rates as freight indications for the Brazil-China route were estimated at the range of $19-$21/wmt.
Firm bunker prices from higher sales
The higher bunker prices continued to support the freight rates as the price of VLSFO rose by $8.50/mt to $443.50/mt at the port of Singapore.
The strength of bunker prices was reflected in the higher bonded bunker sales to international vessels in Zhoushan Port, which reached a total of 1.866 million mt in 2020, up 37.2% on-year.
According to port data, the Chinese port supplied bunkers to a total of 2,405 international vessels in the year through its four anchorages.
During the year, Zhoushan Port also conducted a total of 7,517 bunker operations, which was almost half of volumes done in Singapore, the largest bunker hub of the world.