Capesize freight rates hit a roofer due to market bullish sentiment and the thinner ballaster list that supported higher rates.
The Capesize 5 time charter average jumped by $1,363 day-on-day to $18,592 on Wednesday, due to the upward momentum seen in both basins.
Thus, the Baltic Dry Index (BDI) surged up by 4.55% or 62 points day-on-day to 1,426 readings from the better freight rates.
More trading activity before National Day holidays
The market optimism was based on expectation of more trading activities right before the National Day holidays held in China over the Oct 1-7 period.
Due to the bullish outlook, the time charter equivalent returns on the key west Australia and Brazil to Far East routes had been above $20,000/day since the start of September.
In the Atlantic market, the thinner ballaster list had kept freight rates high, while the strong cargo list had supported higher freight rates in the Pacific market.
VLSFO prices drop despite improving oil demand
VLSFO prices slid by $2/mt day-on-day to $327.50/mt in the port of Singapore, amid slow bunker demand.
The decline of bunker prices occurred despite the crude inventory draw of 1.6 million barrels reported by Energy Information Administration (EIA) for week ended at Sep 18.
The draw was lesser than last week draw of 4.4 million barrels but suggested that oil demand was improving, albeit at a slower pace.