Capesize freight rates rebounded on market optimism, supported by strong FFA market amid the long holidays period.
The Capesize 5 time charter average then rose up by $2,351 day-on-day to $42,959 on Tuesday, due to better market outlook.
The Baltic Dry Index (BDI) also inched up by 3.41% or 104 points on-day to 3,157 readings, due to better freight rates.
Bull run despite holiday period
Freight rates moved up higher as market participants expected better market after the holidays periods with strong demand for iron ores shipments.
However, there was still some standoff between owners and charterers that caused offers and bids to move higher.
In the Pacific market, freight rates continued to gain grounds as miners and operators were seeking for vessels actively for the key western Australia to China route for late May laycan.
On the contrary, the market activities were more muted in the Atlantic basin, though trade participants remained optimistic on the shipping outlook with tight ballaster list and better shipping demand.
Bunker prices bounce on market optimism for H2 2021
Bunker prices rebounded on strong crude market, as the price of VLSFO rose by $11.50/mt on-day to $510/mt in the port of Singapore.
The price uptick was due to market optimism over better oil demand in the second part of 2021, as the US and Europe attempted to ease pandemic curbs and lockdown measures, following high vaccination rates among their population.
Moreover, the US crude inventories dropped by 2.2 million barrels for the week ended in Apr 30, signifying strong oil consumptions and some market participants expected better oil consumption in the summer driving season.