Capesize freight rates rose on strong physical fixtures in both basins, despite some weakening in the FFA market.
The Capesize 5 time charter average then inched up slightly by $79 day-on-day to $26,055 on Tuesday, after some profit-takings in paper market.
The Baltic Dry Index (BDI) however, dipped on softening smaller vessels rates and went down slightly by 0.23% or 5 points to 2,140 readings.
Improving Pacific market on key route
Pacific market burst into life with a flurry of physical fixtures done on the key western Australia to China route for higher iron ore shipment demand.
However, most of the ship-operators were quiet in the Pacific market, and the selloff in paper markets brought some correction in freight rates.
Meanwhile, the freight rates remained firm in the Atlantic market, due to market optimism on thinner ballaster list and higher iron ore export demands.
There was also healthy iron ore and coal demand coming from South Africa to support better freight rates, amid limited tonnage supply.
Rising bunker prices to support freight rates
Bunker prices continued to lend support to the higher freight rates, as the price of VLSFO rose by $2/mt to $487.50/mt in the port of Singapore.
Market sentiment for oil demand turned positive, due to yearly jump of 21% for China’s crude imports in March, which led OPEC to revise its oil demand forecast growth up by 70,000 bpd or 6.6% to 5.95 million bpd.
Moreover, the US crude oil inventory draw for the week ended at Apr 9, provided further confidence boost to the Brent crude prices rising toward the $65 per barrel mark.