Capesize freight rates rose on bullish market sentiments as key routes spotted better gains on active market.
The Capesize 5 time charter average, then rose by $1,863 day-on-day to $38,217 on Thursday, due improving freight rates.
The Baltic Dry Index (BDI) also hiked up 2.73% day-on-day, or 93 points to 3,503 readings, due to better freight rates.
Red-hot Atlantic basin to drive freight rates
The Atlantic market remained the main driver for recent bullish sentiment with decent number of fixtures done at higher rates, especially on the key Brazil to China route.
Moreover, the Pacific market had been putting its weight behind the recent rally as well with a healthy cargo list for moving iron ore and coal cargoes.
There were also fleet inefficiencies in China due to fresh outbreak of Covid Delta variant that affected vessel supplies, which are supposed to return to the market after the recent typhoon weather conditions.
Bunker prices inch up despite mixed outlook
The bunker prices gained slightly amid volatile market demand, as the price of VLSFO rose by $0.50/mt day-on-day to $527.50/mt in the port of Singapore.
Covid Delta worries continued to plague oil demand recovery, though there were some signs that fuel consumption had returned to almost pre-pandemic levels.
Thus, OPEC adopted a bullish market outlook and expected global oil demand to average 96.6 million bpd in 2021. Moreover, the cartel even estimated oil demand to exceed 100 million bpd, during the second half of 2022.