Capesize freight rates continued to march onward with gains as typhoon related weathers caused disruption in shipping schedules.
The Capesize 5 time charter average, then rose by $784 day-on-day to $53,692 on Tuesday, as market slowed down after a huge daily spike in previous session.
The Baltic Dry Index (BDI) then rose by $58, up 1.39% day-on-day, to $4,221, due to better freight rates.
Freight retracement after a 12-years peak
Freight rates extended gains, though at a slower pace after a record high daily hike resulted by typhoon concerns over tonnage delays.
Some trade participants thought that the recent hike had went up too high and expected some pullbacks as weather conditions improved.
In the Pacific market, trade participants rushed to sell forward dates and tried to lock in high freight rates for key route like the western Australia to China, due to typhoon concerns.
However, the market activities were muted as trade participants were in collecting mood that resulted in backtrack of offers from Brazil.
Bunker prices strengthen on firm crude market
The bunker prices rallied on firm crude market, as the price of VLSFO rose by $2/mt to $550/mt in the port of Singapore.
The crude oil prices strengthened further over market concerns for tropical storm development off Texas, threatening recovering oil operations from the previous Hurricane Ida.
However, the auction of China’s strategic oil reserves might ease crude prices as the Chinese authority prepared 7.38 million barrels for public sales on Sep 24.