Capesize freight rates rose higher on bullish paper market, despite slow physical activities in both basins.
The Capesize 5 time charter average then hiked up by $473 day-on-day to $12,152 on Tuesday, due to better FFA market.
The Baltic Dry Index (BDI) also jumped by 1.33% or 22 points to 1,673 readings, amid better freight rates.
Thin physical activities amid paper market hype
Despite the bullish FFA market, the physical market moved sluggish on both basins from scant fixtures.
In the Pacific market, there was still decent cargo list with market enquires over coal and iron ore shipments, while trade sources claimed that some Japanese tenders had resurfaced on the market as well.
However, not many fixtures were concluded as most shipowners were still resisting, while offers were scarce with indicative freight heard on the west coast Australia to Qingdao route at the range of $7.25-$7.45/wmt.
Similarly, the shipping activities were muted in the Atlantic market with limited market talks and concerns over lengthy ballaster lists.
Falling bunker prices fail to support freight rates
Bunker prices plunged further on lower crude prices, as the price of VLSFO nosedived by $12.50/mt to $501.50/mt in the port of Singapore.
The weakness of crude oil prices was attributed to the easing of OPEC+ output curbs as members believed the market can accommodate a surplus of 1.5 million barrel per day production on recovering global oil demand.
In the meantime, oil consumption had improved as IHS Market estimated the volume of refined products held on stationary tankers over 10 days reached 19.2 million barrels by the end of February, which was a 9-months low.