Capesize freight rates improved due to tightened tonnage over typhoon concerns in the Pacific basin.
The Baltic Dry Index (BDI) then increased by 1.47% day-on-day, up 45 points to 3,103 readings, due to the better freight rates.
Limited tonnage over typhoon development off China
Market participants expected Typhoon In-Fa to constrain vessel supply in East Asia region as it is predicted to make landfall to central China over upcoming weekend.
Some Chinese ports were heard to be closed over the potential disruption to shipping activities caused by the typhoon and led to higher offers and bids in the Pacific market.
The Atlantic market also move up despite limited market activities but received supports from thinner ballaster list and market expectation of more iron ore shipments from miners.
Bunker prices move up with crude oil swing
The bunker prices surged up again following the crude oil swing, as the price of VLSFO hiked up by $16/mt day-on-day to $539/mt in the port of Singapore.
Market sentiment for oil demand swung higher again with better outlook for gasoline demand and jet fuel as European air traffic returned to around two-thirds level of the pre-Covid levels.
Then, investment banks also joined into the bandwagon in expecting faster draw on global oil inventory to pre-pandemic levels as economy reopened.
Thus, Barclays bank predicted bullishly for Brent crude prices to hit above the $100 per barrel level, given that the OPEC was slow to ramp up output.