Capesize freight rates softened on thin shipping activities with much market uncertainty in both basins.
The Capesize 5 time charter average then dropped further by $901 day-on-day to $12,316 on Wednesday, as the paper market traded at tight range for March contract.
Thus, the Baltic Dry Index (BDI) reversed into losses despite the strength of Panamax market, falling by 1.04% or 18 points to 1,709 readings.
Strong Panamax and Supramax market to support Capesize rates
Despite the weak showing of the Capesize market, some trade participants expect firm support from the Panamax and Supramax to lift the weak Capesize rates.
Both the Panamax and Supramax had benefited from the robust grains market, which led to some market talks of using Capesize vessels to ship grains in the South America, due to the Panamax vessel shortage.
In the Pacific market, cargo demand remained healthy with all three major miners active in seeking for vessels in the key western Australia to China route.
However, the Atlantic market fared poorly due to standoff between shipowners and charterers, while major miner, Vale was heard to focus on H2 March loading window.
Bunker prices dip from recent rally
Bunker prices dipped after much rally, as the price of VLSFO fell by $3.50/mt to $518/mt in the port of Singapore.
Despite the decline, crude oil prices were supported by lower oil production in the US that dropped by 10% on-week or 1 million barrels per day last week, due to winter storm in Texas.
Due to the low oil supplies, the Bank of America predicted that Brent crude prices to spike over $100 per barrel in next few years, in view of better market fundamentals.