Capesize freight rates rebounded from previous losses, with better offers that supported the market fundamentals for the bullish market.
The Capesize 5 time charter average, then dropped by $5,021 day-on-day to $46,172 on Friday, as market confidence improved over shipping demand amid tight tonnage.
The Baltic Dry Index (BDI) then rose by $221, up 6.07% day-on-day, to $3,864, due to better freight rates.
Good shipping demand despite typhoon concerns
Freight rates got a boost from good shipping demand from both basins, despite typhoon concerns in Asia.
Apparently, there was suspension for port operations in Ningbo and terminals in Shanghai to prepare for the approach of Typhoon Chanthu.
Besides the bad weather, the shipping demand had improved with tight tonnage supply in the Pacific, as trade participants expected the market to bottom out over near term.
Meanwhile, the Atlantic market also attracted better shipping demand especially for September loading dates as miners were active in fixtures.
Bunker prices move down on mixed market outlook
The bunker prices went down on mixed market outlook, as the price of VLSFO dropped by $2/mt to $544/mt in the port of Singapore.
The short-term supply tightness seemed to ease with returning capacity at the aftermath of Hurricane Ida, that as refineries resumed operations in Louisiana, US.
However, there was some supply concerns over Libya’s oil production, while China unexpected released of crude from its reserve caught the market off guard and depressed sentiments.