Capesize freight rates slumped from a sharp selloff, due to bearish market sentiment on the Atlantic basin.
The Capesize 5 time charter average, then plunged down by $1,301 day-on-day to $23,731 on Wednesday, despite a recent rebound in the market.
The Baltic Dry Index (BDI) also dropped by 1.48% or 38 points on-day to 2,530 readings, due to softening freight rates.
Sluggish Atlantic market with little sign of recovery
The Atlantic market still came under pressure with scant activities and lengthy tonnage list, though Vale was heard to secure some fixtures for the key Brazil-to-China route.
There was also a standoff between charterers and owners following the slow physical activities, while freight rates continued to slide in the Pacific market, despite healthy cargo list.
However, there was lesser fixture volume in the Pacific market, and most were done at lower levels, as trade participants were more cautious in their bids and offers.
Bunker prices face correction after recent rally
The bunker prices ended its upward momentum, as the price of VLSFO dropped by $3/mt to $517/mt in the port of Singapore.
Bunker prices faced correction after recent strings of bull run, supported by stronger crude market as Brent crude prices returned to pre-Covid level slightly above the $70 per barrel level.
However, some market participants were concerned over rising inflation which might affect the economic recovery, while doubts remained whether the market could absorb the additional 2 million barrels per from Iran, if the trade sanctions were lifted.