Capesize freight rates inched upward, despite slow shipping activities and market concerns over disruptions of Australian coal shipments.
The Capesize 5 time charter average then increased by $564 day-on-day to $19,437 on Friday, due to improvement in the physical market.
The Baltic Dry Index (BDI) also surged up higher by 2.98% or 66 points to 2,285 readings, supported by the strong Panamax freight rates.
Thinner ballaster list off Brazil to firm rates
Shipping fundamentals continued to improve with the slimming of the ballaster list heading toward Brazil.
Thus, the freight rates continued to firm in key Brazil to China route as market participants expected Brazilian miners to ship more iron ore cargoes in April, as the rainy season came to an end.
However, the heavy rains continued to slow down shipping activities off Australian port of Newcastle and resulted in flood that led to shut of coal rail lines from Hunter Valley.
The Hunter Valley railway network serves mines run by BHP Group, Glencore PLC, New Hope Corp, Whitehaven Coal and Yancoal Australia.
Thus, the bad weather dampened the coal shipping demand in the Pacific market, as heavy rainfall is predicted to last till late March.
Declining bunker prices over softening crude prices
The bunker prices continued to fall on softening crude prices, as the price of VLSFO plunged down by $18/mt to $494/mt in the port of Singapore.
Brent crude oil prices moved closer toward $63 per barrel, due to market concerns over vaccination risks in Europe.
Moreover, the oil rigs count also jumped in the US for the week ended on Mar 19, to a total number of 411 rigs, up 9 rigs week-on-week, which led to some market concerns over higher supply amid subdued oil demand.