Capesize freight rates continued to ride on upward momentum with better market optimism for shipping demand, amid tight tonnage.
The Capesize 5 time charter average, then rose by $711 day-on-day to $40,237 on Monday, due improving freight rates.
The Baltic Dry Index (BDI) also hiked up further at record levels to $3,606, up 1.12% day-on-day, from the rally.
Thin activities amid Asian holidays
After recent rally, the freight market seemed to take a breather with public holidays in South Korea, while most trade participants were in collecting mood at the start of the week.
Hence, there was some softening of freight rates in the Pacific basin despite healthy cargo list, but few fresh enquiries were heard in the market.
In the meantime, the Atlantic market remained firm due to tight tonnage supply, while there were limited market activities outside the key Brazil to China route.
However, some trade participants expected further freight upticks for second-half September loading windows with possible uptick in iron ore demand and tighter tonnage supply.
Bunker prices drop on lacklustre demand
The bunker prices continued to slump amid poor demand, as the price of VLSFO dropped by $2.50/mt day-on-day to $524.50/mt in the port of Singapore.
Oil demand recovery continued to take hit from poor China economic data, as the country’s oil refining rate dropped to 14 million barrels per day (bpd), a 14-months low due to slower industrial activities and retail sales.
Brent crude oil prices also struggled to climb back $70 per barrel level, due to market concerns over rising Covid Delta cases that affected global oil demand.