Capesize rates jumped on better physical market with both basins seemed significant gains despite an upcoming public holiday in Singapore.
The Capesize 5 time charter average hiked up by $1,197 day-on-day to $17,721 on Wednesday, with Aug and Sep contracts traded on highs of $19,250 and $20,750 respectively.
With improvement in Capesize, the Baltic Dry Index (BDI) went up by 4.19% day-on-day to 1,317 readings on Wednesday.
Bustling Pacific to firm market sentiment
Freight rates were pushed up higher with healthy shipping demand in the Pacific market, with mining majors like Rio Tinto and BHP seeking vessels for the key west Australia to China route.
Around two vessels were heard to be fixed by the two major miners for the west Australia to China route at around $6.85/wmt to $7/wmt levels for mid-August laycan, higher than previous range of $6.20/wmt to $6.45/wmt level.
There was also some improvement in the Atlantic market with many talks of better fixtures for the North Atlantic market. According to trade sources, the ballaster list seemed to have thinned out with more cargoes popping up for the key Brazil to China route.
Firm bunker prices to support freight rates
VLSFO prices remained firm and booked a slight gain of $0.50/mt to $349.50/mt at the port of Singapore.
The firmer bunker prices were attributed to a huge drawdown of US inventory that stabilized crude oil prices.
As of July 29, the Energy Information Administration (EIA) recorded 526 million barrels, a weekly drop of 10.6 million barrels and making the largest drawdown since December 2019.
Thus, the Brent Crude prices stabilized around $43-$44 per barrel, while WTI crude prices firmed toward the $41 per barrel.