Capesize freight rates rebounded after recent selloff session, as more spot vessels had cleared out and thus setting up for a more balanced market.
The Capesize 5 time charter average, then grew by $1,627 day-on-day to $27,033 on Thursday, after the paper market turned bullish and made some convincing gains.
The Baltic Dry Index (BDI) then rose by $24, up 0.99% day-on-day, to $2,454, due to better freight rates.
Freight market heads toward equilibrium
Freight rates rose due to a balanced market with improving demand from the Pacific that supported higher bids and offers, while most of the spot ships had cleared out.
According to trade sources, the number of vessels bound for western Australia had decreased considerably to around 100 vessels over the next 30 days as compared to seasonal norm of around 150 ships.
There was also fresh shipping demand from Japanese and South Korean tenders that kept up the supports for higher freight rates and rebounded from the recent corrections of freight rates.
Bunker prices fall on lower crude prices
The bunker prices fell on crude price corrections, as the price of VLSFO dropped by $9/mt to $610.50/mt in the port of Singapore.
Market talks of releasing oil reserves had eased crude prices, as US and China were heard to be working to bring some of their strategic oil reserves into the market.
Moreover, some trade participants expected more downward movement for crude prices in view of the coming Christmas season that usually slowed down trading activities.