Capesize freight rates continued it downward spiral with softening physical demand in both basins that were affected by unfavorable weather conditions.
The Capesize 5 time charter average then slid further by $1,265 day-on-day to $23,366 on Monday, due to slow start to the trading week.
The Baltic Dry Index (BDI) also headed southward on weakening freight rates and dipped by 2.49% day-on-day or 45 points to 1,765 readings.
Thin cargoes list amid bad weather conditions Â
The Pacific market was affected by bad weather conditions with dense fog affected shipping activities off coastal China that led to market talk of further port closures.
Market participants were also concerned over cyclone development off Australian coast as the country entered cyclone season.
Despite weather concerns, major miners like Rio Tinto and FMG continued to seek for vessels but were heard to done at lower bookings for early February laycan.
Meanwhile, the Atlantic market was rather quiet as most trade participants were in collecting mood amid thin cargo list, while some trade participants expected some market volatility during the Brazilian rainy season.
Bunker prices continue to fall on market uncertainty
The bunker prices fell on bearish market sentiments, as the price of VLSFO dipped further by $1/mt to $449.50/mt at the port of Singapore.
Oil demand outlook continued to cloud by rising coronavirus cases that resulted in many countries’ lockdowns to stop the spread.
However, there was some upside in the market as well, as OPEC + were complying well with crude output curbs at the average of 85% in January, with expected large production cut from Libya, Iraq, and Nigeria.