It was a choppy day for the Capesize rates as some market participants were concerned over a new wave of Covid-19 that might delay vessel schedules.
However, the paper market is expected to make a sharp rebound with front end futures nearly up by $2,000 on Wednesday, following by increase of $1,500 on Tuesday, especially for Aug, Sep and Q4 contracts.
Despite the rebound, the Capesize 5 time charter average then dipped slightly by $490 day-on-day to $16,524 on Tuesday.
The Baltic Dry Index (BDI) then also dipped by 2.24% day-on-day to 1,264 readings on Tuesday.
A better Pacific market
The rebound in paper market was attributed to shipping improvement seen in the Pacific market after several fixtures were done at higher rates.
As there was still a good cargo list with some fresh shipping inquiries in the market as around four vessels were fixed for mid-August laycans at the range from $6.20/wmt to $6.45/wmt level.
However, the Atlantic physical market remained sluggish with long tonnage list with ballasting ships sailing at eco-speed.
In the meantime, the trade participants were concerned about stricter COVID-19 measures that could disrupted ship schedules amid rising coronavirus cases.
Bunker prices rise on shifting demand from Hong Kong
VLSFO prices rebounded from recent losses and recorded a rise of $1/mt to $349/mt at the port of Singapore.
Stricter quarantine measures undertaken by Hong Kong had shifted bunkering demand away from the port and might benefit other ports in region, as the 14-days quarantines measures also implied to ship arrival for bunkering purposes.
In the meantime, the crude oil prices found themselves in the limbo recently due to looming second waves of COVID-19 that affected shipping demand.
As such, the Brent crude oil prices were rangebound at $43-$44 per barrel, while WTI crude prices at $41-$42 per barrel.