Capesize freight rates rebounded from slump, due to improvement in Pacific shipping demand despite a slow start to the month.
The Capesize 5 time charter average, then inched up by $581 day-on-day to $37,604 on Thursday, despite weak sentiment in the paper market.
The Baltic Dry Index (BDI) also rose by $68, up 2.23% day-on-day, to $3,115, due to better freight rates.
Pacific market draws support from tenders
Freight rates gained from influx of tender cargoes in the Pacific market, which supported better sentiment in the physical market.
Fresh demand continued to come from South Korean and Japanese tenders, while there was a pickup of shipping demand among the West Australian mining majors for moving iron ore cargoes.
On the contrary, the Atlantic remained sluggish on thin shipping activities, though some trade participants expected some supports from the tight tonnage supply in near term.
Bunker prices strengthen amid market uncertainty
The bunker prices dropped on market volatility, as the price of VLSFO dropped by $0.50/mt to $593/mt in the port of Singapore.
Despite the drop, bunker prices had strengthened recently on firmer crude prices, but the high bunker prices failed to freight rates.
In the meantime, the crude market remained volatile, despite some market calm was achieved by OPEC. As the cartel will proceed with the planned output increase of 400,000 barrels per day in January 2022 but might adjust output quickly to react to demand threat from Omicron variant.