Capesize freight rates rose on improved market sentiments with better physical shipping demand in the Atlantic market.
The Capesize 5 time charter average, then rose by $459 day-on-day to $36,354 on Wednesday, due to firm showing seen in the Atlantic market.
The Baltic Dry Index (BDI) also hiked up 1.04% day-on-day, or 35 points to 3,410 readings, due to better freight rates.
Atlantic key routes to lift market sentiments
The Atlantic market were buoyed by good fixtures done on the key Brazil to China route with better rates, due to the thin ballaster list.
More trade participants were also heard to be interested in September loading windows to move iron ore shipments for the Brazil to China route.
Meanwhile, the Pacific market continued to enjoy decent cargo list, though freight rates started to move sideway after a standoff between the owners and charterers.
Bunker prices rebound on tighter stockpiles among OECD countries
The bunker prices rebounded from previous streak of losses, as the price of VLSFO rose by $4.50/mt day-on-day to $527/mt in the port of Singapore.
The price uptick was linked to firmer crude oil prices with market concerns over tightening supplies among the OECD countries, as crude oil stockpiles dropped below the pre-Covid levels.
However, the market outlook was mixed as Goldman Sachs predicted that the rising Covid infection rates might affect China’s oil demand over the next two months.
Thus, the bank had lowered its oil demand forecast to 97.8 million bpd from 98.4 million bpd estimated previously in July.