Capesize freight rates rebounded slightly with some improvement in the key trading routes amid sluggish market.
The Capesize 5 time charter average then rose by $124 day-on-day to $18,490 on Thursday, with improving market sentiment on shipping demand.
The Baltic Dry Index (BDI), however continued to drop by 1.00% or 22 points to 2,172 readings, amid weakening freight rates.
Small gains in key routes
Both basins continued to experience sluggish physical trading, though the key routes held on and saw signs of improvement in demand.
For instance, there was more enquiries for coal cargoes from Indonesia and East Australia in the Pacific basin, while there were also Japanese tenders to provide supports.
A major miner was also heard to fix a vessel at the indicative freight rate at the range of $8.80-$9.20/wmt range for early Apr laycan at the key western Australia to China route.
Meanwhile, the Atlantic market continued to see a standoff between owners and charterers amid reduced ballaster list during mid-Apr till early May period.
There were also some market concerns regarding the blockage in Suez Canal, which might affect some Brazilian iron ore shipments destinated for China, though most of delays were reflected on containers shipping.
Bunker prices bounce from previous losses
Bunker prices also rebounded from previous losses, as the price of VLSFO hiked up by $7.50/mt to $483.50/mt in the port of Singapore.
Market participants expected crude oil prices to remain firm at the range of $60-$70 per barrel prior to the next OPEC+ meeting on April 1, as member states were likely to maintain their previous production levels in view of the volatile market.
Meanwhile, some oil shipment delays were expected due to bottleneck in Suez Canal, which resulted a traffic jam for oil tankers and containerships.