Capesize freight rates continued to rise, despite market scares of the new covid variant spread and expectation of adverse weather that affected shipping activities.
The Capesize 5 time charter average, then rose by $1,076 day-on-day to $32,393 on Friday, amid a choppy market.
The Baltic Dry Index (BDI) then rose by $89, up 3.32% day-on-day, to $2,767, due to better freight rates.
Better Pacific demand to offset new variant scare
Apparently, the freight rates saw little impact from the detection of new Covid variant, Omicron which sent massive negative shockwaves to the equity market.
Some trade participants pointed to the robust Pacific market for soaking up the downward market pressure, as mining majors increased their intakes of vessels that reduced vessels supply in the basin.
There were some concerns over freezing weather in northern China that might disrupt tonnage schedules, while the Atlantic market was more bullish, backed by fresh demand of iron ore shipments out of Brazil and bauxite from West Africa.
Bunker prices slump over new Omicron variant
The bunker prices fell sharply on lower crude prices, as the price of VLSFO dropped by $11/mt to $627/mt in the port of Singapore.
The detection of new variant Omicron cases among parts of Europe, Asia and Africa, had sent the market into jittery as some countries introduced new travel restrictions to contain the outbreak.
Brent crude prices then dropped toward the $70 per barrel mark, upon market concerns over lesser demand for travels that affected oil demand.