Capesize rates continued its downward slide toward the $20,000 level due to the supply glut in the market.
The Capesize 5 time charter average fell by $2,515 day-on-day to $20,120 on Wednesday, as trading came to stalemate and slowed in final two hours before the afternoon closing.
The Baltic Dry Index (BDI) then slipped by 7.59% day-on-day to 1,473 readings, reflecting the weakness in dry bulk demand.
Supply glut pulls down freight rates further
Freight rates continued their freefall in the Pacific market over the long tonnage list, including the handful of tonnage from China.
However, there was some market optimism over the east Australia to China routes, where charterers and operators were heard to be seeking vessels for moving coal cargoes to the East Asia.
The same bearish market sentiment occurred in the Atlantic market, where there was little fresh shipping demand, though miners like Vale and CSN were heard to fix one vessel respectively for early August laycan.
Bunker prices rise on lower inventory in Fujairah
VLSFO prices continued to rally with gains of $6/mt to $353/mt at the port of Singapore, following a pickup of fuel oil demand in the Middle East.
There was a dip of oil inventory in bunkering hub of Fujairah, which reflected a pickup for the demand of fuel oil.
According to Platts Fujairah Inventory Data, the middle distillates inventory including marine gasoil recorded a drop of 9% week-on-week to 3.941 million barrels.
Meanwhile, the heavy distillates and residues including bunker fuel dropped by 14% on-week to 14.09 million barrels, almost a three-month low since April 27.