Capesize rates continued its downward movement due to muted market in both basin and fell further away from the $20,000 level.
Thus, the Capesize 5 time charter average came under selling pressure and recorded at $17,284, down $1,258 day-on-day on Friday.
The Baltic Dry Index (BDI) did not fared better as well and continued the free-falling mode to 1,317 reading, down 5.12% day-on-day, after attaining a year-high at early July close to 2,000 levels.
Sluggish activities with limited offers
Shipping demand took a bearish turn with ample tonnage supply in the market which prompted shipowners to consider whether to keep their vessels in the Pacific market or ballast them toward Brazil.
Thus, most of the shipowners adopted a wait and see attitude for the time being, amid market uncertainty.
In the Pacific market, Rio Tinto was heard to fix two vessels for the key west Australia to China route for early August laycan at the low rates around $6.00-$6.10/wmt.
The Atlantic market did not fare better with scant activities after Vale revised its bid on the Tubarao to Qingdao route for second-half August laycan at $14.50/wmt.
The low bid suggested that freight rates were yet to find the floor and further corrections are expected in near term.
Bunker prices dip on market uncertainty
VLSFO prices reversed into losses after the recent uptick and recorded a drop of $10.50/mt to $350.50/mt at the port of Singapore, due to bearish market outlook.
The rising US-China tension, weak US jobs report and economic uncertainty amid rising coronavirus cases played into market fears with lower crude oil prices.
However, China’s rising export of VLSO offered some market optimism, after the country recorded a monthly jump of 10.6% to 1.26 million mt in June, according to the General Administration of Customs.
The uptick in exports was attributed to recovery of VLSFO production capacity that totaled at 13.1 million mt by June, after months of lower output amid the coronavirus pandemic.