Capesize freight rates extended its upward momentum to recover from previous slump, despite market concerns over shipping delays at Chinese ports.
The Capesize 5 time charter average, then rose by $933 day-on-day to $36,608 on Thursday, due to improving market sentiments.
The Baltic Dry Index (BDI) also went up by 1.75% day-on-day, or 58 points to 3,376 readings, due to better freight rates.
Shipping delays among Chinese ports
The Pacific basin continued to hold up with decent cargo lists, though some trade participants were expecting some cooling down of the market due to the return of vessel tonnages.
However, some of the vessel supplies were held up in China due to the previous typhoon weathers and more recently restrained by the safety checks to contain the Covid outbreaks.
Thus, it was heard that some ships had been waiting outside the Chinese ports to queue up for safety checks.
Meanwhile, the freight rates had firmed up in the Atlantic market, with better iron ore shipping demand that supported fixtures done at higher level at key routes.
Bunker prices slump from rising covid concerns
The bunker prices weakened further on weak crude market, as the price of VLSFO dropped by $6/mt day-on-day to $528/mt in the port of Singapore.
The crude oil market continued to soften, despite some stabilization with Brent crude oil prices hovered above the $70 per barrel mark recently.
Market concerns remained on rising Covid cases in Asia with fresh outbreaks in China, which threatened oil demand recovery.
However, some banks were more optimistic about market and expected Brent prices to reach $85 per barrel during Q4, as demand outpaces supply growth.