Capesize freight rates dipped lower amid market uncertainty over bad weathers and stringent shipping crew changes from rising Covid cases.
The Capesize 5 time charter average, then fell by $875 day-on-day to $31,880 on Tuesday, due to easing of tonnage supply tightness.
The Baltic Dry Index (BDI) then went down by 1.37% day-on-day, or 44 points to 3,166 readings, due to softening freight rates.
Easing of tight vessel supply from improved weather conditions
There was some easing of the tonnage supplies from typhoon-related weathers as disruptions to shipping activities seemed to have faded in the Pacific basin.
Thus, the freight rates for main Pacific routes had fallen with more availability of vessels, while demand had yet to catch up at the aftermath of Typhoon In-Fa.
Market participants were also concerned over stringent checks for Indian cargoes among Chinese ports, which caused some shipping delays. In the meantime, there was also news of covid regulations delaying crew changes in China.
Meanwhile, the Atlantic market moved slowly amid limited activities, while there was a standoff between owners and operators.
Bunker prices rebound on firm crude market
The bunker prices rebounded again on firmer crude market, as the price of VLSFO went up by $5/mt day-on-day to $547/mt in the port of Singapore.
Brent crude prices continued to hover around the $74-75 per barrel level, despite rising Covid concerns, though American Petroleum Institute (API) recorded a US crude stocks drawdown of 2.9 million barrels for the week ended at Jul 23.
Despite the mixed market outlook, some market participants expected tightening of oil supplies, which might boost oil prices in the latter half of the year.