Capesize market continued its bullish run with rates hovering above the $30,000 level in view of the tight tonnage supply in both basins.
Thus, the Capesize 5 time charter average rose by $1,305 day-on-day to $32,682 on Friday, while the Baltic Dry Index (BDI) reached new high at 1,894 points, up 3.89% day-on-day.
Crewing issue and weather delays to support freight rates
The strong paper market was driven by crewing issues in the Pacific market, while the bad weather in China that caused ship delays and disrupted shipping schedules.
Lot of ships need to change crew after the Australian Maritime Safety Authority announced that ships with crew on board for more than 11 months will be detained.
In the meantime, the Atlantic market was supported by healthy shipping demand and tight tonnage supply that firmed freight rates.
As Vale reaffirmed to maintain its annual iron ore output guidance for 2020 at 310-330 million mt, which led market to expect the Brazilian miner to do some catch-up on shipments during the second half of the year.
Bunker prices steady on firming oil demand
VLSFO prices were steady at $333/mt, a slight drop of 50 cents at the port of Singapore, despite support from rising crude price movements.
The Brent crude prices reached higher toward $43 per barrel, while the WTI maintained at the $40 per barrel mark, due to output restriction and expected global rebound in demand.
OPEC + and Russian oil suppliers agreed to extend their production cut at 9.7 million barrel per day till the end of July. However, they are likely to ease the cut and ramped up production again from August onward, according to Commerzbank.