Capesize freight rates underwent correction phrases again as physical market softened amid holidays and thin activities.
The Capesize 5 time charter average then dropped by $1,331 day-on-day to $37,724 on Thursday, following the downward momentum since the selloff session earlier in the week.
The Baltic Dry Index (BDI) also the dip and went down by 1.98% or 62 points on-day to 3,077 readings, due to the weakening freight rates.
More freight corrections ahead
Trade participants linked to the downtrend to softening physical freight market that followed the sharp drop in FFA to under $39,000 level and lower.
In the meantime, the holidays periods also thinned shipping activities, while trade participants were monitoring closely the worsening covid cases in India that affected port operations.
Meanwhile other ports such as northern China-based ports were heard to charge additional handling fee for Indian cargoes as precautionary measures.
There was also weaker market outlook for the Atlantic market with lower activities expected for June, while some trade sources pointed to gradual increase in the ballasters list toward Brazil.
Bunker prices stabilize amid softening crude
The bunker prices remained static as the price of VLSFO was flat at $507.50/mt in the port of Singapore.
The weaker crude prices were responsible for the flat movement with growing market concern over the uncontrolled spread of covid cases from India to Southeast Asia that affected trade and oil demand.
Furthermore, the restart of Colonial Pipeline after an cyberattack also eased market concerns over gasoline shortage to US East, which led to lower crude oil prices.