Freight rates across all bulker segments rose again on Friday following a week of stop-and-start growth across all tonnages.
The Baltic Dry Index, which gives a bird's eye view of bulker markets, rose by a further 71 points on Friday to reach 1,894 points.
Just six weeks ago, the index was floundering at its lowest level since 2016 as the coronavirus pandemic took its toll on weak demand for shipping.
Of all bulker segments, capesizes have seen the most dramatic return to form over the past month or so, although market participants are still wondering for how much longer rates can continue to rise.
The bull run continued on Friday and the Baltic Exchange assessed the 5TC weighted time-charter average rate for its major cape routes at $32,682 daily, which is $1,305 higher than Thursday.
The 5TC assessment has risen by 6.2% since Monday, which may not quite compare to the 17% advance seen during the previous week but is still respectable.
Rate assessments on benchmark capesize routes have been up and down all week, but the market seems to have found some support as Friday draws to a close.
In the Atlantic
In particular, rates for trips within or from the Atlantic have seen strong increases throughout the week.
"The rally is predominately off the back of the Atlantic Basin crying out for more tonnage. Atlantic charterers from Eastern Canada and Norway are seen to be paying large voyage rates to deliver their iron ore product to China," the Baltic said in its market report on Friday.
"Iron ore prices have come off recent highs, yet the levels still remain a bonus for miners looking to take advantage with freight costs an after-thought."
The Baltic's trans-Atlantic round voyage assessment, labeled the C8, has risen by 48.2% since Monday, which has helped fuel the rise in the 5TC estimate.
Rates on the C8 benchmark were assessed $1,350 higher on Friday at $36,225 daily.
This followed a fixture reported on Thursday in which a cape was booked on the route at $35,000 per day.
German power company RWE relet SK Shipping's 181,500-dwt, scrubber-fitted cape K Confidence (built 2013), which was fixed to Koch Shipping for a round-trip from Gibraltar via Puerto Drummond in Colombia and Karabiga, Turkey.
Also in the Atlantic, a huge $1,900 was added to the Baltic's rate assessment for trips from the Mediterranean to China (C9).
Rates on the route have advanced by 9.8% since Monday and were assessed at $54,400 daily on Friday.
"Voyage routes all posted gains although price discovery was difficult across the board with rumour and speculation playing a big roll," the Baltic said in its report on Friday.
Of the key iron ore voyage routes, the Baltic assessed trips from Western Australia to China at $10.723 per tonne on Friday, which 4.8% higher than Monday's level.
The 208,400-dwt Golden Courage (built 2020), which is commercially managed by Golden Ocean, was fixed on Wednesday for voyage to China from Port Hedland at $10.75 per tonne.
In contrast, rates from Brazil to China have declined by 3% over the course of this week, finishing at $20.75 per tonne on Friday.
Round-voyages from China to Brazil have also fallen by 5.1% since Monday due to quiet fixing activity.
Panamax picture
In the 82,000-dwt panamax segment, progress appeared to have plateaued since last week on the back of weakening sentiment and falling demand.
That was until Friday, when the weighted time-charter average rate for the Baltic's five key panamax benchmarks jumped up by $523 to reach $11,840 daily.
This jump came mainly on the back of increasingly bullish reported rates for fixtures on the C6 route ffrom Singapore to the Atlantic.
Rates on the benchmark were assessed $883 higher on Friday at $12,803 daily, which is 6.7% more than Monday's level.
On Friday, Olam International was reported to have fixed the 82,200-dwt Balos (built 2018), which is managed by Samos Steamship, on the Singapore-Atlantic route at $15,000 daily, redelivering in Singapore/Japan.
Cargo supply of grains from South America has improved this week, but rates have remained flattish until now.
"With talk of a healthy grain crop to come from the Black Sea for the second half of July and August, this appeared to support the market in many areas, and with a large push from FFAs [forward freight agreements] and capesize rises on Thursday, sentiment quickly turned positive," the Baltic's market report said of activity this week.
Friday saw another panamax reported fixed on period charter.
Palm Shipping's 74,716-dwt Princess Doris (built 2001) was reported fixed to Ausca Shipping for four to six months at a daily rate of $9,750, which commenced on Wednesday.
Supramaxes stronger in the West
It is a similar picture in the supramax market, where weighted time-charter earnings on the Baltic's 10 key benchmarks were assessed $88 higher on Friday at $7,716 daily.
"In the Atlantic, brokers reported some stronger numbers being discussed from the east Mediterranean with increased demand for grain movements; however, no fixtures came to light," the Baltic commented in Friday's report.
"From other areas, again little fresh information surfaced but some said there was still a lack of prompt vessels in the US Gulf area."
Meanwhile, rates on Asian routes continue to decline.
Trips on the S8 route from south China via Indonesia to east coast India lost a further $119 on Friday and were estimated by Baltic panellists at $5,906 per day, which is down by 8% since Monday.
Likewise, round-trips from south China via Indonesia have fallen by 7.5% over the course of this week.
The Baltic assessed the S10 route at $7,011 daily on Friday, which is $183 below Thursday's level.
