Capesize freight rates remained flattish despite the clearing of tonnage in Atlantic and some shipping disruption due to typhoon in the East Asia.
Thus, the Capesize 5 time charter average saw slight correction of $381 day-on-day to $18,394 on Friday.
The Baltic Dry Index (BDI) also followed the dip and went down by 1.06% day-on-day to 1,488 readings.
Flattish freight rates
There was still decent shipping demand in the Pacifc market, however, the freight rates remained flat as trade participants expected higher rates over near term due to disruption caused by typhoon in the Far East region.
So far, it was heard that only Rio Tinto had fixed a ship for the Dampier to Qingdao route for mid Sep laycan around $8.20/wmt level.
Then, another major miner, FMG was heard to be in talk for two vessels for the west Australia to China route for mid-Sep laycan done at the range of $8.05-$8.15/wmt.
Meanwhile, the long ballaster list was almost taken out by miners Vale and CSN after their fixing spree for the key Brazil to China route.
In the meantime, there remained a standoff between the ship-owners and charterers in the Atlantic market for second-half September and early-October dates.
Bunker prices drag down by Covid-19 blues
VLSFO prices went down by $6.50 day-on-day to $345/mt at the port of Singapore, despite the better crude oil prices movement.
The bunkering sector has been affected by the COVID-19 pandemic, which resulted in lesser shipping activities and lower revenue for bunkering firms.
For instance, Malaysia’s oil trading and bunkering firm, Straits Inter Logistics reported a yearly drop of 63% in pre-tax earning during the second quarter to MYR 1.36 million or $326,200.
Meanwhile, Singapore’s once largest bunker firm, Hin Leong was sued by PricewaterhouseCoopers (PwC) for $3.5 billion over fraudulent documents to conceal trading losses.