Capesize freight rates rebounded from losses as trade sources believed that the market had bottomed out.
Thus, the Capesize 5 time charter average spotted a small rise of $173 day-on-day to $15,248 on Friday, on better market optimism.
The Baltic Dry Index (BDI) then stayed flattish and went down slightly by 0.16% or 2 points day-on-day to 1,267 readings.
Freight rates bottoming out
There is still healthy cargo list for the Pacific market which saw more trade participants like miners and operators seeking for vessels to move iron ores.
The easing of port congestion at West Australia also encouraged more miners and operators to enquire for shipments, though trading activities had been slow.
However, there was little improvement for freight rates in the Atlantic market, as trade participants were concerned whether the market can digest the long ballasters list especially for end-September laycan.
Despite of that, the Brazilian iron ore shipment had rose gradually since June due to favorable weather and market expects high export volumes to continue till year-end.
VLSFO prices drop to three-months low
VLSFO prices dropped by $3/mt day-on-day to $311/mt in the port of Singapore, the lowest level since mid-June, due to low global bunker demand.
Residue stock levels for Singapore, the world’s largest bunkering hub then fell to an eight month low at 20.735 million barrels for the week ended on Sep 9 due to fewer cargoes arrivals.
However, Singapore’s bunker demand rose by 13.6% on-year to 4.17 million mt in August, according to Maritime and Port Authority (MPA).
This was due to higher sales volumes of high sulfur fuel oil (HSFO) at 1.03 million mt, which accounted around 24.6% of the total bunker demand, while sales of VLSFO dropped by 1.9% month-on-month to 2.87 million mt during August.