Capesize freight rates rose on better shipping activities, as trade participants tried to fix vessels before the upcoming holidays in early May.
The Capesize 5 time charter average, then rose by $469 day-on-day to $18,460 on Wednesday, as the Pacific market showed further signs of improvement.
The Baltic Dry Index (BDI) also hiked by $21 day-on-day, or up 0.87% day-on-day to $2,425, due to better freight rates.
Rising coal demand to support freight rates
Freight rates were given a boost from better coal demand especially in the Indonesia to India route that lend support to higher rates in the Pacific.
The upcoming long holidays in China also prompted more trade participants to charter vessels before the break, while there was less spot availability in the Pacific market, as more ships were bound for Australia over the past two week.
In the meantime, the limited tonnage availability also pushed up rates in the Atlantic market, though it was heard that there was plenty of ballasters in the north Atlantic region and some available spot ships around the Cape of Good Hope.
Bunker prices rise on stabilizing Covid cases in China
The bunker prices went up on market optimism on oil demand, as the price of VLSFO hiked up by $30/mt to $843.50/mt in the port of Singapore.
The market optimists were supported by some stabilization of covid cases in China, especially among the major cities of Shanghai and Beijing.
The reduction in Covid cases might suggest lockdown may be lifted soon which will improve the country’s oil consumption with more relaxation of logistics movement across provinces.
In the meantime, the US gasoline stockpiles dropped to their lowest level in New England since 1991, while diesel inventories fell to lowest volume since 1996, despite an overall gain of 619,000 barrels recorded last week by the Energy Information Administration.