Capesize freight rates continued to recover from improving shipping demand, which lifted market sentiment.
The Capesize 5 time charter average, then rose by $459 day-on-day to $35,675 on Wednesday, due to better market confidence.
The Baltic Dry Index (BDI) also went up by 1.13% day-on-day, or 37 points to 3,318 readings, due to better freight rates.
Bullish market sentiment for freight market
The recent wave of fixtures had lifted market sentiment in the Pacific basin, as shipping demand returned after the typhoon season.
So far, the shipping demand had kept in pace with the returning vessel supply as well, resulting in better freight rates done in key routes.
Moreover, the Atlantic market saw active shipping demand and reported a decent number of fixtures out of Brazil at higher level, amid the thinned ballaster list.
Bunker prices fall further from soft crude market
The bunker prices softened further on weak crude market, as the price of VLSFO slumped by $10/mt day-on-day to $534/mt in the port of Singapore.
The slump reflected bearish market sentiment on China’s oil demand as the coronavirus resurgence spread to more Chinese provinces.
Furthermore, the rising US crude supplies did little to hold back market fear, as the Energy Information Administration recorded a biggest supply gain by 3.63 million barrels recently since March 2021.