Capesize freight rates continued to slide on sluggish market, but faced little impact from the blockage at Suez Canal.
The Capesize 5 time charter average then dropped by $748 day-on-day to $18,366 on Wednesday, as cape derivative continued to decline.
The Baltic Dry Index (BDI) also went down further by 3.39% or 77 points to 2,194 readings, amid softening freight rates.
Waiting for more corrections
Trade participants expected further freight corrections ahead and many players were heard to be in waiting for clearer market directions.
Nevertheless, there was some market hype over the Suez Canal blockage, but many market participants felt that it will have little impact on Capesize rates due to lower shipping volumes as compared to tankers and containers passing through the transit.
Meanwhile, there was some fresh enquiries in the key western Australia to China route from the mining majors in the Pacific basin, but most failed to conclude into fixtures, except for one iron ore shipment for Apr 8-10 laycan.
Some trade participants also concerned over the slow shipping demand in the Atlantic basins, due to the long ballaster list during first half of April, as little demand emerged from the Brazilian miners.
Bunker prices drop on bearish market outlook
Declining bunker prices also did not support the falling freight rates, as the price of VLSFO went down further by $10/mt to $476/mt in the port of Singapore.
However, the Suez Canal blockage incident did cause slight rebound in crude oil prices, as Brent Crude oil price hiked up toward $63 per barrel, due to market concerns over delays in oil shipment.
Despite the rebound, market sentiment on oil demand remained low as European countries like Germany, France and Italy imposed new lockdown measure beyond Easter holidays period in early April.