Capesize freight rates recovered further due to better shipping demand in the Pacific market, despite lengthy ballast list in the Atlantic basin.
The Capesize 5 time charter average, then rose by $1,624 day-on-day to $32,099 on Wednesday, despite a choppy session.
The Baltic Dry Index (BDI) then rose by $56, up by 2% day-on-day, to $2,861, due to better freight rates.
Improving Pacific to lift market sentiment
Freight rates had improved unlike the sell offs that were seen over the past two weeks, as the bids and offers hiked up in the Pacific market.
Due to the recovery, some trade participants believed that the freight market had bottomed from previous slump, though others disagreed, citing too early to make judgement call in view of the slowing steel demand in China.
Similarly, the Atlantic market also saw much improvement, though there was a growing list of ballasters that put pressures on freight rates.
Bunker prices rise on crude optimism
The bunker prices rose higher on better crude prices, as the price of VLSFO rose by $10.50/mt to $639/mt in the port of Singapore.
The price upticks were due to declining US crude stocks which reported a draw of 2.5 million barrels for the week ending at Nov 5, according to American Petroleum Institute.
However, the Energy Information Administration report indicated a build up of 1 million barrels inventories during the week, though it was lowered than previous market estimate for a 2.1 million barrels buildup.
Nevertheless, there was plenty of optimism in the market, expecting better jet fuel consumptions rates after the US and Europe relaxed air travels for vaccinated personnel.