Capesize freight rates maintained upward momentum despite the physical market taking a break in the bullrun.
The Capesize 5 time charter average, then rose by $1,672 day-on-day to $34,930 on Thursday, as market fundamentals improved in both basins.
The Baltic Dry Index (BDI) then rallied by 2.87% on-day, up 91 points to 3,267 readings on better freight rates.
Halftime amid the bullish market
Freight rates took a breather from recent rally, cooling down from the recent rally, though both basins extended gains on better shipping fundamentals.
The Pacific market continued to attract fresh enquiries from Japanese and South Korean end-users, though there was less demand from miners based on western Australia.
On the contrary, the Atlantic basin experienced a much quieter market, with market interests focused on the key Brazil-to-China route, but without many fixtures done.
Bunker prices move upward on bullish outlook
The rising bunker prices lent some support to the firmer freight rates, as the price of VLSFO inched up by $1/mt to $538/mt in the port of Singapore.
The slight gain followed the recent weakness in crude market which had a slight fall following a stronger US dollar, as US Federal Reserve indicated an end to monetary easing policy.
Thus, Brent crude oil prices traversed down toward $72 per barrel level, though the commodity found strength from the falling US crude oil stockpiles and doubts over the US-Iran talks from bringing additional Iranian crude to the market.