Capesize freight rates dipped from recent rebound, despite strong buying interests that translated to decent gains on the Q3.
The Capesize 5 time charter average, then went down slightly by $61 day-on-day to $32,018 on Thursday, despite better improvement in the physical market.
The Baltic Dry Index (BDI) then spotted slight gain of 0.90% day-on-day, up 28 points to 3,147 readings, due to better freight rates.
Better improvement in the physical markets
Both basins were showing signs of improvements with better fixtures reported and done at higher rates.
The Pacific market had healthy cargo list and spotted fixtures concluded at mid-July laycan, with some South Korean tenders to build up the shipping demand.
Similarly, the Atlantic market also saw a flurry of activates with market attention on the trans-Atlantic and fronthaul routes, which digested some of the tonnage supply.
Bunker prices ride on firm crude prices
The bunker prices rose on oil market demand optimism, as the price of VLSFO rose by $1.50/mt to $544.50/mt in the port of Singapore.
The three-year high crude prices continued to push the bunker market upward, as Brent crude prices hiked above the $75 per barrel, indicating market confidence on recovering global oil demand.
Meanwhile, market estimated the OPEC to ease their output cut from August in wake of better oil demand with additional supply of around 510,000 bpd, according to Bloomberg.