Capesize freight rates continued to improve on better shipping demand, with marginal gains recorded in both basins.
The Capesize 5 time charter average then hiked up by $220 day-on-day to $17,274 on Tuesday, with good volume being changed hand in a choppy session.
The Baltic Dry Index (BDI) went up higher by 1.71% or 34 points to 2,017 readings, after much improvement in freight rates.
Mixed shipping movements for both basins
The Pacific market continued to enjoy the limelight with healthy shipping demand, especially with the build-up of iron ore shipping demand from western Australia.
Both mining majors, Rio Tinto and BHP were heard to have fixed vessels for early April laycan at around $9.15-$9.25/wmt for the west coast Australia-to-Qingdao route.
Meanwhile, the Atlantic market was more sluggish, due to market concerns over the long ballaster list heading toward Brazil.
However, there was still some gains in the key Brazil to China route, due to higher fixtures done for mid-April to end-April laycan.
Bunker prices slip on weaker crude prices
Bunker prices plunged from previous rally in a volatile market, as the price of VLSFO slumped down by $15.50/mt to $517/mt in the port of Singapore.
The downturn followed the falling crude prices as Brent crude prices dropped toward $68 per barrel, due to market fear on possible stalling of vaccination campaign in Europe.
Meanwhile, the weekly US crude inventory also went up higher by around 14 million barrels against market estimate for a rise of 1 million barrels in early March.
Going forward, the US crude stocks may continue to build up in coming weeks, due to slow refineries recovery rate in Texas, after the disruption caused by the winter storm.