Capesize freight rates continued to slide on mixed market from an oversupplied Atlantic market, despite some cargo improvement seen in the Pacific.
Due to the mixed market movement, the Baltic Dry Index (BDI) increased slightly by 1.70% or 19 points to 1,134 readings.
Both basins move in different directions
Atlantic market was still oversupplied from the long ballast list that was not digested by shipping demand and resulted a standoff between shipowners and charterers.
It was heard that some shipowners planned to idle their vessels off the Cape of Good Hope in view of the vessel supply glut in Brazil.
On the contrary, the Pacific showed more promises with three mining majors still active in the west Australia to China routes in moving iron ore shipments.
Moreover, there was some coal shipments as well, though most Chinese trade participants had already exited the market due to informal import ban on Australian coals.
However, there was some coal shipments secured for South Korean end-users for the winter heating season, and it was heard that there were some fresh enquires from Japan as well.
Bunker prices end bull run amid bearish outlooks
Bunker prices slipped following the downtrend movement of the crude oil movement, as the VLSFO dropped by $1.50/mt to $363.50/mt at the port of Singapore.
The renewed lockdowns among major European economies dampened the oil demand growth, despite the prospects of coronavirus vaccines.
Thus, some trade participants suggested that further upturn for the crude oil rested in OPEC + group’s willingness to extend their output cut for further three months in next year to support prices.