Capesize freight rates rebounded from previous losses due to improvement in cargo lists for both the Pacific and Atlantic basins.
The Capesize 5 time charter average inched up slightly by $39 day-on-day to $11,897 on Friday, amid better freight rates in both basins.
The Baltic Dry Index (BDI) then increased by 1.23% or 14 points to 1,148 readings, after getting much support from the improving freight rates.
High expectation for iron ore shipping in December
Market sentiments were lifted by expectation of the more fixtures before the Christmas period, as miners tried to move iron ore cargoes to China.
So far, the Pacific market continued to enjoy healthy cargo list, as all three mining majors like Rio Tinto, BHP and FMG were heard to be active in seeking vessels for the west Australia to China route to move iron ores.
On the contrary, the Atlantic market seemed to be weaker due to the lengthy ballast list, while there was a big standoff between shipowners and charterers.
However, Brazilian mining major, Vale managed to fix a few vessels for the first-half December laycans for the Brazil to China route at around the $13/wmt level to support freight rates.
Bunker prices lend support to the freight rates
The higher bunker prices also lent some supports to the freight rates as the VLSFO increased by $2.50/mt to $366/mt at the port of Singapore.
The bunker prices upticks followed the higher crude prices movement, which rose on market sentiment for effectiveness of coronavirus vaccines.
Thus, the Brent crude oil prices surged toward $45 per barrel, while WTI Crude inched up toward the $43 per barrel level.