The capesize bulker sector continued its upward trend on Wednesday, marking a fifth straight trading day of gains. The capesize 5TC, which takes an average of spot rates across five benchmark rates, has risen 16.3% since 1 December to $43,030 per day on Wednesday, according to Baltic Exchange data. “The market seems to be in a mini-squeeze mode, driven by weather delays and port congestion,” said John Kartsonas, founder of Breakwave Advisors and its dry bulk ETF-trading platform. “In addition, there is decent cargo flow in the Atlantic and more cargoes should be in the line.” But he said it is “difficult to say ” where capesize spot rates will continue to trend, but they are not expected to be this high going into next year. “Yet, rates in Q1 should be better than historical averages,” he said, referring to the first quarter.

The China-Japan transpacific round voyage, which takes iron ore from Western Australia to China, shot up 21% over the seven-day period to $44,485 per day on Wednesday, reaffirming speculation that China’s economic boost may bolster demand for the commodity. The People’s Bank of China announced 15 December plans to lower how much cash that banks must hold in reserve by 0.5%, a move that would release CNY 1.2trn ($188bn) in liquidity. Five capesizes have been fixed since Tuesday to carry iron ore along the benchmark Western Australia-to-China route, according to Baltic Exchange information. The average freight rate for the route has improved 12.2% since 1 December to $14.84 per tonne on Wednesday.

The 175,611-dwt Cape Sun (built 2010) scored the day’s highest freight rate with a fixture to Fortescue Metals Group on Wednesday to move iron ore from Port Hedland to China at $14.85 per day, with loading on 23 or 24 December. That’s higher than what Australian miner Rio Tinto agreed to pay on Monday when it fixed two unnamed capesizes to ship 170,000 tonnes of iron ore on the Western Australia-to-China route at between $13.35 to $13.75 per tonne.

Dry bulk shipping’s smaller asset classes saw more modest spot rate improvements over the past seven days. The panamax 5TChit $28,992 per day on Wednesday, an 11.2% gain since 1 December. The supramax 10C rose 6.2% to achieve $27,721 per day in that time frame, while the handysize 7TC climbed 1.85% to reach $28,426 per day.