Capesize freight rates maintained upward climb, due to the improving physical market and higher bunker prices.
The Capesize 5 time charter average then went up by $198 day-on-day to $12,712 on Friday, due to market optimism on December shipping demand.
The Baltic Dry Index (BDI) followed the better freight rates and booked a gain of 0.90% or 11 points to 1,230 readings.
More room of improvement for the Atlantic market
The Atlantic attracted more shipping demand to move west African bauxite during the second half of December, which supported freight rates.
On the contrary, the Pacific market seemed to be muted but market participants expected more demand in early to mid-December, amid the healthy cargo list.
For instance, mining major, Rio Tinto was heard to be seeking vessels to move iron ore cargoes for the key west Australia to China route at mid-Dec laycan.
In the meantime, some coal shipment was fixed as well with the South Korean trade participants for the eastern Australia route to North Asia.
High bunker prices to rise freight rates
The recent rally in bunker prices had supported firmer freight rates, even though the VLSFO went down by $1.50/mt to $381.50/mt at the port of Singapore.
However, the market optimism on oil demand seemed to wane, after Brent Crude prices failed to reach the $50 per barrel level and slipped toward $47 per barrel, while the WTI Crude prices slid toward $44 per barrel.
In the meantime, the China-Australian trade tension did not ease after much diplomatic efforts initiated by the Australian government.
Due to informal ban on selected Australian goods such as coals, it was heard that more than 50 dry bulk carriers were stranded off China with estimated cargoes worth around $500 million, according to shipping data company, Kpler.