Case 2 : If the number of cargoes increases to 85 (D2)
more cargoes than ships
=> freight rate shoots up to almost $1 per barrel
swing of 10 cargoes is quite common, but the effect on rates is dramatic
Case 3: market sentiment
If there are a few more ships than cargoes, but owners believe that rates are rising, they may decide to wait.
Suddenly there are more cargoes than ships and rates rise,
at which point, the reticent owners enter the market and fix at ‘last done’.
=> expectation curve
Fundamentals : demand < supply
sentiment: demand > supply