Capesize freight rates rose further on better shipping demand with higher rates seen in the Atlantic market, due to thin ballaster list.
The Capesize 5 time charter average, then rose by $1,837 day-on-day to $36,368 on Thursday, despite some slight correction in the trading session.
The Baltic Dry Index (BDI) then rose by $100 day-on-day, or up 3.14% day-on-day to $3,289, due to better freight rates.
Freight rates gain support from Atlantic’s thin ballasters list
Freight rates remained bullish, despite selloff activities at the end of the paper session after a strong opening.
The paper market seemed to follow the global equity sell off worldwide, as market feared that the higher inflation rates and higher US interest rates would pull a brake to the global economy recovery.
In the physical market, the Atlantic market was supported by strong demand for the Brazil to China route due to tight ballaster list, as shipowners preferred to keep vessels in the Pacific market.
Hence, this increased the vessels supply in the Pacific market, which lowered the freight rates amid better coal shipping demand.
Bunker prices dip on volatile market
The bunker prices reversed into losses, as the price of VLSFO dropped by $12/mt to $919.50/mt in the port of Singapore.
As the market expected some easing to the tight HSFO supplies with new cargoes arrival later in the month from higher imports.
Meanwhile, the crude prices had slid in view of more Venezuelan oil entering the international market in near term, as the US is considering to lift some of the trade restrictions on Venezuelan crude exports.
The appreciation of the US dollar had also made commodities denominated by the US dollars like oil to be more expensive in view of the higher currency exchange costs.