Capesize freight rates continued its upward push albeit a slower rate than previously seen in recent rally.
Thus, the Capesize 5 time charter average gained by $603 day-on-day to $34,896 on Tuesday, as the market uptrend moved in slower momentum.
The Baltic Dry Index (BDI) then managed to stay firm above the 2,000 readings and hiked up by 26 points to 2,097, despite the slower upward momentum in the physical market.
More cargoes split to Panamax
More trade participants were seeking for Panamax vessels to move iron ore cargoes due to the shortage of Capesize ships in the market.
As such, Brazilian miners were heard to be sourcing for the cheaper Panamax ships for October laycans amid the limited supply of Capesizes, while the operators were more interested in fixing vessels for November laycans.
Meanwhile, the market outlook for both basins remained bullish due to the tight tonnage and high demand of moving iron ores off Brazil and for the western Australia to China routes.
VLSFO prices rebound due to crude output disruption
VLSFO prices jumped up by $8.50/mt day-on-day to $338.50/mt at the port of Singapore, following the recent rebound in crude oil prices and oil strike in Norway.
Around six Norwegian offshore oil and gas fields were suspended at the start of the week, due to workers’ strikes that cut around 330,000 barrels per day of the country’s total oil output.
Market participants were also concerned over Hurricane Delta, which intensified into a Category 4 storm on Tuesday and headed toward the Gulf of Mexico, threatening the oil production in the region.