Capesize freight rates rebounded on better restocking demands amid tight tonnage supply and port congestion among Chinese ports.
The Capesize 5 time charter average, then went up by $1,724 day-on-day to $63,030 on Monday, challenging for new heights amid bullish sentiment.
The Baltic Dry Index (BDI) then rose by $73, up 1.57% day-on-day, to $4,717, maintaining record-high upward momentum.
Tight tonnage supply supports firmer rates
Shipping delays remained common among the congested Chinese ports as priority for unloading operations were given to container ships first, instead of dry bulk carriers.
This prolonged the waiting queue amid the tight tonnage supply market, while demand for moving iron ore improved on better restocking demands.
The Pacific market saw healthy coal shipping volumes coming from South Korean trade participants, though there were some market concerns over iron ore demand after the Golden week holidays in China.
Meanwhile, the Atlantic rates remained firm and supported by slimming ballast list, as most owners preferred to keep vessels in the Pacific instead of ballasting west of Singapore.
Bunker prices continue to rise from supply tightness
The bunker prices rallied further on better crude market, as the price of VLSFO rose by $6/mt to $571.50/mt in the port of Singapore.
The upticks found support as Brent crude prices rose to $80 per barrel due to supply outages, while an energy crisis loomed over Europe from the lack of natural gas.
Apparently, the supply of oil, gas and coal were playing catch up to the growing demand for winter heating season and global economic recovery from the Covid pandemic.