Capesize rates moved up again on bullish market sentiments for both the Pacific and Atlantic basins.
The Capesize 5 time charter average rose by $887 to $13,297 on Monday, reaching new highs for the prompt, while testing the recent highs on Q4 and Cal 21.
The Baltic Dry Index also increased by 5.42% to 973 points at the start of the week for the 12th straight gain session and at this momentum the index may reach the 1,000 marks at no time.
Cool down in Pacific and Atlantic market
The overheated Pacific market seemed to cool off a bit with freight rates facing a slight correction with only two major miners remained active in seeking vessels.
At least three vessels were fixed by Rio Tinto and FMG for late June and early July laycan at the indicative freight rates of $4.95/ wmt to $5/wmt for the west coast Australia to Qingdao route.
Similarly, the Atlantic market seemed to slow down at the start of the week, thus the freight indicated on the Brazil to China route remained stagnant at the range of $15/wmt to $16/wmt.
Lower bunker sales volume in May
VLSFO prices gained by $2.50 to $308.50/mt at the port of Singapore, following the rise in crude oil movements.
Despite the concerns over second wave of pandemic, there was some rising demand for oil as evident of crude throughput in China, which rose by 8.2% year-on-year in May.
Thus, Brent crude prices rose toward $40 per barrel, while the WTI went up toward the $37 per barrel, on strengthening oil demand.