Capesize freight rates started sluggish at the start of the week but found supports from typhoon disruption that tightened ship supply.
The Baltic Dry Index (BDI) then inched up slightly by 0.34% day-on-day, up 11 points to 3,210 readings, from the firmer freight rates.
Tight vessel supply from bad weathers
Trade participants were concerned over typhoon impact on China from Typhoon In-Fa as it made its way inland, while the development of Tropical Storm Nepartak off Japan also sparked concerns.
Due to these typhoons, the vessel supply became scarce in the region and it was expected to last the entire week at the aftermath of typhoon movements and heavy rains.
The Pacific saw some fresh shipping demand on the key west Australia to China route, while the Atlantic market moved slowly with a standoff between owners and operators.
Though, most trade participants expected a typical strong season period for shipping activities during the September loading window.
Bunker prices fall amid higher Covid infection rates in Asia
The bunker prices reversed from previous rally, as the price of VLSFO went down by $4/mt day-on-day to $542/mt in the port of Singapore.
The firmer crude oil market could not support the softening bunker prices, despite Brent crude prices recovered toward the $74-75 per barrel level.
However, the market participants doubted over bunker demand recovery as Covid Delta variant infections continued to rise in Asia, resulting in falling bunker prices in Asia as compared to higher prices in the US and Europe.