Capesize freight rates strengthened further, after a flurry of fixtures done at higher rates from better shipping demand.
The Capesize 5 time charter average, then rose by $812 day-on-day to $41,049 on Tuesday, due to improving freight rates.
The Baltic Dry Index (BDI) surged up further at record levels of almost 11 years high at $3,657, up 1.41% day-on-day, due to the ongoing rally.
Freight rally goes from strength to strength
The Atlantic continued its upward momentum with good gains on the Trans-Atlantic and fronthaul routes.
The key route of Brazil to China also enjoyed higher rates, due to support from thin ballaster list and better iron ore shipping demand from the miners.
Meanwhile, the Pacific basin lent some support to firm up freight rates with plenty of fixtures, though most were flattish due to the resistances from ship owners.
Bunker prices fall on weak market outlook
The bunker prices went into a downward spiral, as the price of VLSFO fell by $5.50/mt day-on-day to $519/mt in the port of Singapore.
Oil demand continued to decline from weak Asian economic data, as Brent crude oil prices went to sub-$70 per barrel level.
Trade participants were worried about renewed lockdowns in Japan and China in the face of rising Covid Delta cases, while U.S. shale oil output is expected to rise to 8.1 million barrels per day (bpd) in September, the highest production level since April 2020.