Capesize freight rates dipped lower on thin market activities, due to trade participants’ concerns over unfavorable weathers and lengthy ballaster list.
The Capesize 5 time charter average then dropped by $255 day-on-day to $11,679 on Monday, due to weak physical market.
The Baltic Dry Index (BDI) also fell further by 1.43% or 24 points to 1,651 readings, amid softening freight rates.
Market uncertainty in both basins
Shipping demand had turned for the better in the Pacific market with healthy cargoes list of iron ore and coal enquiries.
However, trade participants were concerned over tropical low development off eastern Australia which may result in heavy rains and gales that affect shipping lanes.
Due to the weather uncertainty, not many fixtures were heard being done in the Pacific market with resistance from the shipowners.
Meanwhile, the Atlantic market were dragged down by lengthy ballasters list which is expected for arrival to Brazil by mid-March. There was also a standoff between owners and charterers, amid the subdued market.
Bunker prices face correction on weaker crude
Bunker prices continued to slip further on weakness of crude oil, as the price of VLSFO fell by $5/mt to $514/mt in the port of Singapore.
There had been a correction of crude oil prices, following the poor economic indicators of China in February with PMIs recorded at 9-month low level.
The oil market was also spooked by the possibility of the OPEC+ bringing back the crude production of 1.5 million barrels per day back into the market.