Capesize buoys by both basins

Capesize paper market continued its upward movement with positive market sentiment in both Atlantic and Pacific basins. The Capesize 5 time charter average hiked by $759 to $6,762 on Thursday, as market participants pushed the index just before long Easter holidays. Some trade sources expect the Capesize freight market to show improvement as mining majors continued to seek vessels in key iron ore shipping routes like the west Australia to China route. It was heard that Rio Tinto, FMG and other operators were seeking ships to move iron ore and thus improved their bids for the Australia- China route. Meanwhile, some trade participants were optimistic in reaching a crude oil output cut deal between OPEC +, Russia, G20 in view of lower oil demand brought by lockdowns and pandemic.   Thinner tonnage for Atlantic The Atlantic market had shown vast improvement, thanks to better shipping demand in key routes like the Brazil-to-China iron ore hauling route. According to trade sources, the long tonnage list had been cleared to a thin level with more owners wanting to ballast. Then, CSN was heard to fix a ship for the Qingdao route for end-April laycan at around $11/wmt level, which set the market freight rate at mid-$10s/wmt to $11/wmt range for the Brazil to China route.     Bunker prices slip amid OPEC, Russia meeting Bunker prices rallied on largest crude oil production cut in history as the VLSFO rose by $1.50 to $ 271/mt at the port of Singapore. OPEC + group, Russia and G20 had agreed to largest oil production cut in history at 9.7 million barrel per day, with effect on May 1 till the end of June. By 10 June, all the related parties will meet and see if further actions were needed. The output cut had since rallied oil and related prices that caused bunker prices to rose which may support freight rates in near term. Meanwhile, the port of Singapore saw a jump in bunker sales for the month of March at 4.33 million mt, up 11.41% month-on-month, according to data from the country’s Maritime and Port Authority.