Capesize freight rates rallied further on market optimism over better shipping demand and fundamentals in both basins.
The Capesize 5 time charter average then rose by $1,925 day-on-day to $28,056 on Thursday, due to booming paper market.
The Baltic Dry Index (BDI) also rose further by 6.66% or 145 points to 2,323 readings, supported by better freight rates of the larger ladies.
Improving fundamentals to boost market confidence
With the paper market rally, trade participants were more hopeful over better shipping fundamentals with thinning ballaster list in the Atlantic basin.
According to trade sources, the ballaster list had been reduced and almost cleared for May, which lifted market sentiment on the key Tubarao-to-Qingdao route for May laycan.
Meanwhile, the Pacific market continued to see healthy cargo list, while there was fresh enquiry for Brazilian miner, Vale to move iron ore cargoes from Teluk, Malaysia to China.
Rising bunker prices on better demand outlook
Bunker prices rose higher on better market outlook, as the price of VLSFO rose by $9/mt to $504/mt in the port of Singapore.
Crude oil prices continued to rise on better US economic data with higher retail sales, and faster vaccinations that pushed Brent crude prices toward the $66 per barrel levels.
However, consultancy firm, Wood Mackenzie adopted a bearish stance over long-term oil demand by expecting demand to drop by 2 million bpd from 2023, due to rise of renewable energy, electric cars and industry complying to carbon emission cut of the Paris Agreement.