Capesize freight rates rallied to record high levels, amid tight tonnage supply and improving shipping demand in both basins.
The Capesize 5 time charter average, then rose by $1,968 day-on-day to $61,683 on Thursday, as market participants anticipated a super cycle ahead.
The Baltic Dry Index (BDI) then jumped further by $91, up 2.00% day-on-day, to $4,651, another record high levels since 2008.
Strong cargo flows on back of tight tonnage
Both the Pacific and Atlantic basins enjoyed healthy cargo lists as Chinese participants stepped up their restocking activities after coming back from holidays.
In the meantime, the tonnage supply remained tight with congestion among Chinese ports that caused some delays to shipment arrivals.
However, trade participants remained bullish and expected prompt cargoes coming from Western Australia and in the key Brazil to China route.
Both basins reported substantial cargo volumes as miners ramped up production for exports to catch up with their annual guidance.
Bunker prices rise on extended crude inventory draws
The bunker prices inched up on better crude support, as the price of VLSFO rose by $0.50/mt to $560/mt in the port of Singapore.
The extended rally was linked to crude prices rising to two-month high as US crude inventory recorded another draw, due to recovering production from extreme weather.
According to Energy Information Administration (EIA), the US crude inventory recorded a draw of 3.5 million barrels for the week ended on Sep 17. The latest draw then had placed US crude inventory at almost three-year low at around 414 million barrels.