Capesize freight rates showed more improvement with better spot demand in both the Pacific and Atlantic basins.
The Capesize 5 time charter average, then rose by $2,461 day-on-day to $30,475 on Tuesday, recovering from recent corrections.
The Baltic Dry Index (BDI) then moved up by $87, up by 3.20% day-on-day, to $2,805, due to improving freight rates.
Improving demand despite bad weather delays
Freight rates had recovered from recent slumps due to improvement in shipping demand, however bad weathers remained a concern as they caused delays off northern China ports.
Some trade participants were also in a rush for fixtures in early November that supported better bids and offers in the spot market.
However, China’s off-peak steel demand season continued to cause some market doubts on shipping iron ore cargoes with declining steel and raw materials prices amid winter output curbs.
Bunker prices rise amid crude supply crunch
The bunker prices hiked upward on stronger crude prices, as the price of VLSFO rose by $11.50/mt to $617.50/mt in the port of Singapore.
The global power crunch had caused oil demand to rise for power generation purposes, with some trade participants expecting a price spike to $100 per barrel over the next 12 months.
Moreover, the supply crunch may worsen in coming years as oil capex had decreased for the consecutive past two years, down by 34% in 2020, then decrease of 25% in 2021, according to International Energy Forum.