Capesize freight rates rebounded from a series of corrections, after gains were made in both basins.
The Capesize 5 time charter average, then rose by $959 day-on-day to $53,240 on Friday, despite the absence of Chinese trade participants as they prepared for holiday celebrations.
The Baltic Dry Index (BDI) then jumped by $60, up 1.42% day-on-day, to $4,275, from improving freight rates.
Strong shipping demand amid port congestions
Freight rates were supported by firm shipping demand, while typhoon concerns had diminished, though port congestions at CJK saw little improvement.
There were market concerns over lesser Chinese trade participants’ involvement in the market, due to public holidays till Sep 21.
However, the Pacific freight rates were supported by decent cargo list with strong iron ore shipping out of western Australia.
The Atlantic market also took cue from the firm Pacific market, with fresh enquiries in the key Brazil to China route, while ballaster list was trimmed with shipowners preferring to keep vessels in the Pacific.
Bunker prices spot gain despite growing supplies
The bunker prices inched up on firm crude market, as the price of VLSFO rose by $0.50/mt to $559/mt in the port of Singapore.
The small uptick reflected volatility in the crude market, as market participants feared of more supplies coming from Russia that upset the fundamentals.
As Russia planned to raise its oil exports by 3% in Q4, while US crude oil production is expected to resume in the Gulf of Mexico at around 72% after Hurricane Ida disrupted 26 million barrels of offshore productions.