Panamax dry bulk rates rose sharply this week on views that demand from China was again picking up, while the introduction of new port security standards had little impact on prices, brokers said on Tuesday.
Sentiment also brightened as shipment demand for minerals rose in line with rebounding raw material prices on the back of lower stockpiles.
Modern panamax rates for the benchmark US Gulf to Japan route were quoted above $45 per tonne on Tuesday, compared with $37-$38 a tonne a week earlier.
"In the Pacific route, demand for shipping of iron ore was more visible, which contributed to greatly improving sentiment," said a broker at a Japanese shipping company.
"It seems that demand from China is also picking up again, which is providing a positive psychological boost to freight rates again," the broker said.
Sentiment had deteriorated rapidly from mid-April after China took measures to cool down its economy, which dampened the country's demand for minerals and grains.
China's rejection of some cargoes of Brazilian soybeans two months ago was also seen as a factor behind accelerated falls in freight rates from highs of $75-$80 marked in February-March.
But the market was relieved to learn last week that China had agreed to resume soybean trade with Brazil.
"People think the markets have reached a turning point. The market outlook for the fourth quarter of this year is very bright," a Seoul broker said.
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