Capesize freight rates spotted a gain on better physical activities and expectation of another rally in Q4.
The Capesize 5 time charter average went up by $211 day-on-day to $15,875 on Thursday, on good market volume and market optimism for Q4.
The Baltic Dry Index (BDI) then rose by 1.01% or 13 points day-on-day to 1,294 readings on better freight market.
Another rally in Q4
Shipping demand remained robust in the Pacific market with much clearing of the spot tonnage list.
There was also more shipping demand for coal as well as strong demand for moving iron ore, which saw mining majors like Rio Tinto, BHP and FMG seeking ships at the west Australia to China route for early October laycan.
Some market participants also expected another rally in the fourth quarter with more Brazilian cargoes ramping out as Vale tried to catchup shipments to fulfil its annual guidance.
However, the freight rates were still under pressure for the end-September and early-October laycan for the Brazil to China route, while the fixture levels were firmer for second-half October dates.
VLSFO climbs further on crude rally
VLSFO prices rose by $4/mt day-on-day to $334/mt in the port of Singapore, due to the recent rally in crude oil prices.
The upticks of crude prices were due to OPEC + keeping track of the production cut among its members such as Nigeria, Iraq and UAE.
Hurricane Sally also left a dent in US oil production, though it was heard that oil producers were slowly returning to the Gulf of Mexico to resume operations.