Capesize freight rates rose on bullish market momentum with a strong Atlantic basin pushing for further gains.
The Capesize 5 time charter average, then rose by $2,866 day-on-day to $47,361 on Thursday, extending the bullish run.
The Baltic Dry Index (BDI) also hiked up further at record-high levels of $3,976, up 3.73% day-on-day, from the rally.
Tight tonnage set up for further gains in the Atlantic
The Atlantic basin saw over ten vessels’ fixtures done by Vale for September laycan that boosted freight rates, amid the tight tonnage supply situation.
Other than that, there were several fronthaul fixtures being confirmed at higher rates, supported by the limited number of fresh ballasters.
However, the Pacific basin experienced some cooling off from the recent overhyped market, with moderation of freight rates, despite some fresh enquiries coming from the Japanese and South Korean trade participants.
Bunker prices slump further on weak global oil recovery
The bunker prices failed to support freight rates on weaker crude, as the price of VLSFO slumped further by $12/mt day-on-day to $506/mt in the port of Singapore.
Brent crude oil prices continued to decline further toward the $66 per barrel mark upon Covid fears that hampered the global oil recovery.
Market participants were also worried about the US Fed tapering of bond buying programs, which may be a precursor for slower US economic activities, after the one seen in China with slowing industrial and retail activities.