Capesize freight rates suffered a sharp fall, after a selloff in the session following weakness in the physical market.
The Capesize 5 time charter average, then plunged down by $2,004 day-on-day to $30,600 on Thursday, after a series of selling pressure in the market.
The Baltic Dry Index (BDI) also fell by 1.33% day-on-day, down 45 points to 3,338 readings, due to weakening freight rates.
Bearish market sentiments on both basins
The selloff in paper market reflected poor market confidence on shipping demand amid high supply tonnage.
Some trade participants even anticipated further Capesize freight rate correction after the fall of Panamax rates, which managed to hold against selling pressure in the paper market recently.
Spot cargoes demand had declined on both basins, despite a handful of fixtures being done at lower rates.
Apparently, there was still healthy cargoes list in the Pacific market, while the Atlantic market faced lengthy ballast list with little fresh enquiries.
Bunker prices receive support from firm crude
The bunker prices rallied further on the firm crude market, as the price of VLSFO rose by $11/mt on-day to $553.50/mt in the port of Singapore.
Brent crude prices may well head toward the $80 per barrel mark, after OPEC failed to reach an agreement to increase production levels in a preliminary meeting.
However, there was market talks of the cartel increasing the output by 400,000 barrels per day (bpd), instead of previous estimated at 500,000 bpd, while some trade source pointed out that OPEC might extend output cut till late 2022.