Capesize freight rates rebounded with a much-improved Pacific market, though the Atlantic basins remained sluggish with oversupply of tonnage.
The Capesize 5 time charter average, then inched up by $787 day-on-day to $20,632 on Wednesday, amid better market outlook.
The Baltic Dry Index (BDI) posted gains of 2.52% or 61 points on-day to 2,481 readings, following a good performance of the Panamax freight market.
Improving Pacific market to lift market sentiment
The better FFA reflected improved shipping fundamentals in the Pacific market, which boosted a good cargo list with fresh enquiries on moving cargoes.
Thus, a good number of fixtures were done at higher rates, and there was even market talks of Panamax operators seeking for Capesize vessels to move cargoes.
However, there was some market concerns over foggy weather conditions in some of the Chinese ports that resulted in shipping delays.
Meanwhile, the Atlantic market saw scant activities and bogged down by lengthy ballaster list, though it was heard that there was some reduction in tonnage.
Bunker prices rebound on firmer crude demand
The bunker prices rebounded from previous losses, as the price of VLSFO rose by $5.50/mt to $526/mt in the port of Singapore.
This was due to firmer crude market as Brent crude prices continued to sit above the $70 per barrel level due to better global consumption during summer season.
As the Middle East region experienced scorching heat this summer and consumed much more electricity than usual to stay cool.
For instance, Saudi Arabia was estimated to increase crude consumption by 25% more this summer than the last, which totaled up to 1 million bpd for electrical generation alone.