Capesize freight rates extended its record-high bullish run, with market optimism on better demand and tight tonnage.
The Capesize 5 time charter average, then rose by $3,446 day-on-day to $44,495 on Wednesday, due to better market sentiment.
The Baltic Dry Index (BDI) also hiked up further at record-high levels of $3,833, up 4.81% day-on-day, due to the rally.
More steams from the Atlantic market
The Atlantic basin continued to lead the bullish run with a strong key Brazil-to-China route, benefiting from the thin ballaster list and short September loading window.
There was also decent shipping demand for iron ore and coals out of the Atlantic basin, that supported further uptrend in the freight rates.
Meanwhile, there was some congestion among the Chinese ports that resulted in vessel inefficiency and tightening tonnage supplies in the Pacific basin.
These resulted fixtures to be done at higher rates, while there were growing ballasting interests among trade participants, due to the strong Atlantic basin.
Bunker prices decline further on weak crude
The bunker prices continued its downward spiral, as the price of VLSFO dipped further by $1.50/mt day-on-day to $518/mt in the port of Singapore.
Brent crude oil prices declined further toward the $66 per barrel mark, amid poor demand outlook and slowing down of China’s industrial and retail activities.
In the meantime, the aviation oil consumption took a hit, as trade sources expected widespread long-haul flying to postpone even further into 2022, due to rising Covid Delta infections.