Capesize freight rates continued to dip, due to slow shipping demand in both basins.
The Capesize 5 time charter average went down by $289 day-on-day to $12,332 on Tuesday, amid the muted market.
The Baltic Dry Index (BDI) then dropped by 1.30% or 16 points to 1,211 readings, due to weaker freight rates rates.
A better Atlantic market after workers’ strike
Some market participants expected further improvement in the Atlantic market, after the end of three-month workers’ strike at Cerrejon mine in Colombia.
As it might resume more iron ore shipments to digest the lengthy tonnage list at the trans-Atlantic and fronthaul shipping demand.
However, some trade participants felt that the demand came too late and hardly lifted the overall depressed Brazilian freight market.
Meanwhile, the Pacific market still found support from the healthy cargo list, but the trading activities moved at a slower pace, with lower bids and offers being made in the market.
Bunker prices rebound amid mixed outlook
Bunker prices rebounded from the recent lows, as the VLSFO went up by $3.50/mt to $383/mt at the port of Singapore, amid mixed crude oil outlook.
The crude oil market went bearish as OPEC + decided to postpone meeting to discuss further extension of output cuts. This led Brent crude oil prices to fall toward the $47 per barrel level, while WTI retreated to the $44 per barrel level.
However, some market experts estimated the global economy to grow by 4.4% on-year in 2021, with oil demand growing at 6.1 million barrels per day, due to gradual economic recovery from the pandemic.