Capesize rates buoyed on good physical fixture with healthy shipping demand out of both basins.
Thus, the Capesize 5 time charter average spiked sharply by $1,130 day-on-day to $7,307 on Friday, after a solid gain that lifted the curve to weeks highs.
Following the Capesize rally, the Baltic Dry Index (BDI) also surged further to 679 points, up 7.44% day-on-day on Friday, the highest level since late April this year.
Strong appetite to ship iron ore
The robust iron ore demand had lifted the freight rates as many trade participants expected better physical movement in coming weeks.
High iron ore prices above $100/mt also help to support freight rates as steel demand increased among high construction activities in China.
As such, many fixtures were done at the key west Australia to China route by major miners, where at least four vessels were believed to be fixed at the $5.35/wmt to $5.40/wmt range.
Meanwhile, the Atlantic market improved from thinner tonnage list, amid high demand to move iron ore out of Brazil.
Market participants were more bullish over the July laycan for the key route such as Brazil to China in moving iron ore cargoes.
Bullish bunker to support freight rates
Bunker prices hiked to upward climb after OPEC + agreed to extend current production cut of 9.7 million bpd for another month after initial expiry in June.
VLSFO reacted positively to the output cut and rose by $6.50 to $306.50/mt at the port of Singapore.
In the meantime, the Brent crude prices continued to hover above $40 per barrel, heading toward $42 per barrel, while the WTI ventured toward $40 per barrel level.