Capesize freight rates continued to inch downward, despite some improvement seen in the physical market.
The Capesize 5 time charter average, then fell by $152 day-on-day to $28,542 on Friday, after much selling pressure during the session.
The Baltic Dry Index (BDI) then dropped by 1.11% day-on-day, down 34 points to 3,039 readings, due to the weakening freight rates.
Mixed market for freight rates
The market sentiment continued to be mixed, as some trade participants believed that the market had found its floor after recent improvement in the physical market, while another group expected further corrections ahead.
The Pacific had stabilized from recent slump with supports from healthy cargo list and fresh enquiries from Japanese and South Korean end-users.
However, the Atlantic market remained flat from thin shipping activities, though a good number of COAs were fixed by Brazil’s Vale for the August-November loading window.
Bunker prices soften on oversupplied market
The bunker prices fell due to concerns for oversupplied market, as the price of VLSFO dropped by $3/mt on-day to $547.50/mt in the port of Singapore.
Crude oil market had weakened due to market fear over rising Covid cases in the West and Asian countries that dampened oil demand.
Meanwhile, OPEC seemed to have reconciled among squabbling members of Saudi Arabia and UAE to finalize over output production, thus alleviated the tight supply situation in the crude market.