Capesize trades lower on market inactivity

Capesize rates ended lower in the short trading week due to public holidays in Singapore and in Greece.

Most of the market participants were waiting for clearer market direction amid the mixed market outlook and thin liquidity.

Nevertheless, the Baltic Dry Index (BDI) continued its upward movement with small gains of 1.14% or 18 points day-on-day to 1,595 readings on Friday.

 

Muted trading in both basins  

There was not much fresh cargoes and inquiries in the Pacific market, thus the indicative freight heard on the west coast Australia to Qingdao route was in the $8.30- $8.50/wmt range.

In the Atlantic market, the freight rates for end-August and early September dates were also depressed due to the long ballaster list for end-August laycans.

There was also a stand-off between owners and charterers for shipments out of Brazil that stagnant the freight rates for key Brazil to China route.

 

Bunker prices drop over mixed outlook

VLSFO prices dropped by $4.50/mt to $351.50/mt for the port of Singapore, amid mixed outlook for oil demand.

Some of trade participants were concerned about the spread of coronavirus pandemic to shipping crews as evident of a recent case of a vessel calling port at Singapore for refueling purposes from India.

All the 15-crew onboard were reportedly tested positive for COVID-19 and the vessel was placed under quarantine with immediate effect.

In the meantime, Singapore’s largest bunker trading firm, Hin Leong’s founder, Lim Oon Kuin had been charged with fraud for forgery of trade documents to secure bank loans.

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