Capesize freight rates continued to hike on better market activities with strong showing from the Atlantic basins.
The Capesize 5 time charter average, then rose by $1,309 day-on-day to $39,526 on Friday, due improving freight rates.
The Baltic Dry Index (BDI) also hiked up over decade level at 3,566, up 1.80% day-on-day, after a string of bullish gains.
Atlantic market leads the rally
The Atlantic market continued to lead the charge and pushed rates higher with several fixtures done out of Brazil.
However, some trade participants were concerned if the rally was sustainable, after miner Vale went quiet after a few fixtures for September loading.
Overall, the market benefited from thinner ballaster list, while demand caught up with more iron ore shipments.
Meanwhile, the Pacific market enjoyed a decent cargo list, though there was lack of fresh enquiries among key routes. However, miner FMG had returned to the market with some fixtures of end-August laycan.
Bunker prices fall on market volatility
The bunker prices dipped in the volatile market, as the price of VLSFO dropped by $0.50/mt day-on-day to $527/mt in the port of Singapore.
Market sentiments were dampened by rising Delta variant infections that threatened the fragile oil demand recovery and resulted Brent crude oil prices steadied around $70 per barrel.
In the meantime, Iran’s oil production dropped to a 40-years low at under 2 million bpd, according to the U.S. Energy Information Administration.
The low output volumes were linked to US trade sanction, though there were talks between the two countries to reach an agreement on oil production and nuclear deal.