Capesize freight rates gained slightly, despite the absence of Chinese participants for long holidays celebration.
The Capesize 5 time charter average, then inched up by $83 day-on-day to $86,953 on Thursday, as tight tonnage supplies continued to support freight rates.
The Baltic Dry Index (BDI) also inched up by $3, up 0.05% day-on-day, to $5,650, due to firmer freight rates.
Absence of Chinese trade participants slow shipping activities
The recent softening of the FFA coincided with the weeklong holidays in China, that kept Chinese trade participants out of the market.
During their absence, there were more offers from shipowners as they expected more shipping activities to return later, while the tight tonnage supply continued to firm rates.
In the meantime, some Capesize coal cargoes had been split into Panamax stem and more cargoes might do so to ease up the tight tonnage list.
Meanwhile, the Pacific market had a busy day of fixtures, with more enquires from Japanese and South Korean trade participants, while the Atlantic market moved slowly after a standoff between owners and charterers.
Bunker prices inch down after recent rally
The bunker prices fell despite high crude prices, as the price of VLSFO went down by $5/mt to $581/mt in the port of Singapore.
The global energy crunch had pushed Brent crude oil prices above $80 per barrel level, but market expected the OPEC to accelerate supply in addition of the production increase of 400,000 barrels per barrel scheduled for November.
Moreover, the tight supplies may support further upticks in crude prices as US diesel stockpiles were at a 20-years low, according to the Energy Information Administration.