Capesize freight rates moved in mixed directions as the decent shipping demand, higher bunker prices and firm iron ore prices failed to push rates up.
Thus, the Capesize 5 time charter average went down slightly by $114 day-on-day to $15,764 on Friday, amid the mixed market outlook.
The Baltic Dry Index (BDI) however was rather flattish and posted a small gain of 0.15% or 2 points day-on-day to 1,296 readings.
Mixed outlook for Q4
The decent cargo list caused freight rates to inch up for the Pacific market, which saw more demand for moving coal from eastern Australia.
However, some trade sources indicated that the coal demand remained relatively small as compared to the larger volumes of iron ore shipments in the support for higher freight rates.
In the meantime, there was not much improvement of freight rates in the Atlantic market with fewer players in the market, while freight rates over the Brazil to China route were date-specific.
More shipping demand was focused on second-half October laycan for moving iron ore in the key route of Brazil to China in comparison to softer demand seen on end-September and early-October windows.
VLSFO prices find support on firm crude
VLSFO prices rallied again and hiked up by $9/mt day-on-day to $343/mt in the port of Singapore, following the recent strength in crude oil price movements.
According to trade sources, OPEC + seemed to prepare for a new production cut, while investment banks like Goldman Sachs predicted an oil deficit of 3 million bpd at the fourth quarter, due to an undersupplied market.
However, the recent rally in bunker prices did not push freight rates higher due to mix market sentiments.