Capesize freight rates continued to improve with better physical market, though there were market concern over the development of Typhoon In-fa and its impacts on shipping activities.
The Capesize 5 time charter average, then inched up by $64 day-on-day to $29,135 on Tuesday, with some improvement in the physical market.
The Baltic Dry Index (BDI) then increased by 0.16% day-on-day, up 5 points to 3,058 readings, due to the better freight rates.
Typhoon concerns and mixed market sentiments
Market outlook were affected by coming Typhoon In-Fa concerns with possible threats to fleet disruption among the Chinese ports, which led to some port closures.
Ship turnover was another issue impacted by typhoon concerns, while shipping activities are limited from public holiday occurring in Japan later in the week.
Despite these bearish factors, physical Capesize freight rate still spotted some gains due to better shipping demand in the Pacific market.
However, the Atlantic market continued to be muted, though some trade sources expected some short-term recovery with more cargoes enquiries from ship operators.
Bunker prices drop over volatile crude and supply glut
The bunker prices went down from weaker crude, as the price of VLSFO fell by $12/mt day-on-day to $523/mt in the port of Singapore.
Crude oil market had been volatile recently after OPEC agreed to lift output only to be met by market concerns over falling oil demand from rising Covid cases.
Some trade participants worried that there will be much surplus in oil supplies and little demand to digest stocks, as the EIA just recorded a buildup of crude inventories by 2.1 million bbls to 439.7 million bbls last week.