Capesize freight rates continued to gain on improving shipping demand in both basins especially among key routes.
The Capesize 5 time charter average then inched up by $242 day-on-day to $31,634 on Thursday, after a volatile session.
The Baltic Dry Index (BDI) also went up slightly by 0.82% or 23 points on-day to 2,824 readings, due to the softening freight rates.
Iron ore shipping demand improves for both basins
Both basins saw some improvement in iron ore shipments among the key routes especially for the Pacific market.
Besides the usual major miners, the Japanese and South Korean tenders had also supported better freight rates amid tighter tonnage, after some port congestion occurred in China.
Meanwhile, the Atlantic market began to recover as Brazilian miners and operators were more active in seeking vessels, though freight rates were affected by the growing ballaster list for early loading windows.
Bunker prices soften on weak crude
The bunker prices continued to spiral downward on weaker crude, as the price of VLSFO went down by $7/mt to $480.50/mt in the port of Singapore.
As crude prices softened after claims of lifting the trade sanctions against Iran, which trade participants worried that it would bring additional barrels to the oversupplied oil market.
However, some market participants remained hopeful of the oil demand recovery, as evident of high volumes of crude oil purchases from China and Japan in the spot market, despite declining Indian demand due to rising covid-19 infections.