Capesize freight rates rebounded from losses, on firmer rates from the Pacific, though the Atlantic rates were still struggling on thin cargo list.
The Capesize 5 time charter average then went up by $332 day-on-day to $12,606 on Friday, amid the mixed market.
The Baltic Dry Index (BDI) also hiked up slightly by 0.67% or 8 points to 1,197 readings, on better freight rates.
Huge spread between the two basins
There was a widening TCE spread between Pacific and Atlantic basin, due to the mixed market movements and volatile bunker prices.
Nevertheless, the Pacific market still had decent cargoes list, however more shipowners were ballasting east for the Pacific, which may soften rates in near term, due to rising vessels supply.
Meanwhile, more shipping delays were expected off China due to the winter season and there were market talks of fixtures done at high-$7s/wmt in the west Australia to China route.
In the meantime, the Atlantic market were still depressed by the lengthy ballaster list, even though some of these ballasters had been diverted to the Pacific market.
On the key Brazil to China route, the trade participants were working on January laycan as some fixtures were heard done on the H2 January by trading house.
Bunker prices rally on bullish market sentiment
Bunker prices continued to rally on market optimism, as the VLSFO rose further by $11.50/mt to $395/mt at the port of Singapore, following firmer crude oil price movement.
The market participants expected oil demand to make a comeback on news of distributing the coronavirus vaccines to countries like the UK, India and Indonesia by year-end.
There was also much market clarity after OPEC + reached an agreement for the production cut of 7.2 million barrels per day (bpd) in next year, which support oil prices further as the global economies recovered from the effect of the pandemic.