Capesize freight rates rebounded from previous slump, as tonnage list was shortened with better shipping demand.
The Capesize 5 time charter average, then rose by $420 day-on-day to $47,407 on Thursday, as market sentiments improved.
The Baltic Dry Index (BDI) however, dropped by $12, down 0.30% day-on-day, to $4,001, due to softening freight rates.
Improvement in the Pacific for the rebound
Shipping demand improved in the Pacific with more fixtures done at higher rates, with constant influx of Japanese and South Korean tenders, amid the healthy cargo list.
Miners were active in the key route of west coast Australia to China, despite the recent slump in iron ore prices.
However, the Atlantic market lagged behind the uptick with thin market activities, though trade participants expected a busier period next week. As more operators obtained contract of affreightment (COA) liftings from Vale for early October loading window.
Bunker prices dip on market volatility
The bunker prices reversed into losses due to the volatile market, as the price of VLSFO dropped by $5.50/mt day-on-day to $534.50/mt in the port of Singapore.
Although the recent low US crude inventories had kept oil prices traded higher, like Brent crude prices hitting above $73 per barrel, but there were still market concerns over the slowing economic growth in China and impact of Covid Delta spread on oil recovery.
Some trade participants also expected a quick recovery to the oil production lost from Hurricane Ida, which was one of the main drivers for the recent oil price rally.