Capesize freight rates kept up the positive momentum with steady gains, amid improved shipping outlook.
The Capesize 5 time charter average then increased by $657 day-on-day to $17,931 on Wednesday, after the modest trading volume during the session.
The Baltic Dry Index (BDI) went up higher by 4.36% or 88 points to 2,105 readings, supported by firm Panamax market for better freight rates.
Bullish outlook for Q2
The Capesize freight rates received much support from the rally in smaller vessels, which lifted market sentiment on a bullish outlook.
Likewise, the Pacific market continued to enjoy healthy shipping demand, though only one major miner like Rio Tinto was heard to be active in seeking vessels, along with some ship operators.
Many shipowners also preferred to keep vessels in Pacific for the round trip, rather than sailing them west toward Brazil, despite of better freight rates there.
Meanwhile, the shipping activities were thinned in the Atlantic market, though trade participants expected more improvement in the second quarter with more iron ore exports from Brazil.
Bunker prices drop on declining crude prices
Bunker prices inched down on softer crude prices, as the price of VLSFO dipped down by $1/mt to $516/mt in the port of Singapore.
Crude oil prices softened after the EIA reported a weekly crude inventory build of 2.4 million barrels for the week ended on Mar 12.
Despite ample of oil stocks, the OPEC members still had spare capacity of around 7.7 million bpd, while non-OPEC countries had an additional of 1.6 million bpd idle capacity, which can be easily brought into the market in short order.