Capesize freight rates continued to climb due to bullish market outlook that resulted in stronger FFA market.
The Capesize 5 time charter average then rose by $310 day-on-day to $28,830 on Monday, following the rally last week.
The Baltic Dry Index (BDI) also rose further by 1.97 % or 47 points to 2,432 readings, due to better shipping fundamentals.
Rising momentum in both basins
The physical market still had not caught up with the bullish paper market, but freight rates had been rising steadily on strong iron ore and coal shipping demand.
For instance, mining majors and ship operators remained active in the key western Australia to China route, seeking vessels for early May loading windows.
Similarly, the freight rates remained firm in the Atlantic market with miners seeking for end-May loading windows at the key Brazil to China route.
Meanwhile, there was minimum market impact from the suspension of Brazil’s CSN iron ore terminal in mid-April, after the Brazilian authority fined the miner for breach of environmental regulations.
Bunker prices slid over lockdown concerns
Bunker prices dipped after recent rally, as the price of VLSFO rose by $4.50/mt to $508.50/mt in the port of Singapore.
Oil demand outlook swung into bearish territory again, due to market concerns over renewed lockdown in Delhi, India from rising Covid-19 cases.
However, there was some uptick in market with China’s built up of oil inventory to around 1.63 million bpd in March, due to higher crude oil import and domestic output.