Capesize freight rates continued its upward momentum, due to the improving physical market.
The Capesize 5 time charter average went up by $328 day-on-day to $12,514 on Thursday, due to better freight rates.
The Baltic Dry Index (BDI) followed the uptrend and booked a gain of 1.84% or 22 points to 1,219 readings.
More improvement in the Atlantic market
The Atlantic seemed to turn the corner in finding balance between supply and demand, with more enquires heard on fronthaul cargoes out of east coast Canada to the Far East.
However, the freight market performed poorly out of Brazil, with the time charter equivalent rates trended sideways.
Meanwhile, the Pacific market continued to drive market forward with healthy cargo list on the key west Australia-China iron ore route.
However, some trade participants were disappointed on the lack of updates on lifting of the Australian coal import ban, despite some easing of political tension between Australia and China.
High bunker prices draw down rates
The recent rally in bunker prices had drawn down the time charter equivalent rates, while VLSFO reversed down by $3.50/mt to $383/mt at the port of Singapore.
Apparently, the market optimism on oil demand came to a halt, due to the rising coronavirus cases. The high cases had resulted in the second round of lockdown measures in Europe, which some market participants expected a drop of 20-30% in economic activities.
Thus, the Brent Crude prices went down toward $47 per barrel, while the WTI Crude prices slid toward $44 per barrel, following the bearish sentiment.