Capesize freight rates rose by year-end, due to better physical freight rates supported by firm iron ore prices.
The Capesize 5 time charter average then hiked up by $940 day-on-day to $16,409 on Wednesday, amid good traded volume and strong index.
The Baltic Dry Index (BDI) followed the upward market movement and rose slightly by 2.41% or 32 points to 1,362 readings on better freight rates.
Good shipping outlook for the new year
Although, the shipping activities had slowed down toward the year-end due to holiday season, but the market outlook remained positive with supports of decent iron ore prices.
The healthy cargo list in the Pacific and tighter tonnage list in the Atlantic market were likely to support better freight rates in the upcoming new year.
For instance, most trade participants were positive in the key Brazil to China route, due to the tight tonnage supply, especially for the January loading window.
Though, there was some market concerns over the congestion over the key western Australia to China route, which reduced fleet efficiency, as well as bad weather that might lead to some Chinese ports closure during the winter season.
Bunker prices rise on higher crude oil movement
Bunker prices rose again amid the choppy oil market, as VLSFO gained by $1.50/mt to $397/mt at the port of Singapore.
The recent uptick was partially attributed to US crude inventory draw of 600,000 barrels for the week ended in Dec 18 instead of inventory hike, based on report from Energy Information Administration (EIA).
Moreover, the depreciation of US dollar also supported oil prices, while there were still some market concerns over the new coronavirus strain in UK that might dent oil demand in near term.