Capesize freight rates had a quiet start to the new month, though market sentiments remained positive at the aftermath of typhoon conditions.
The Capesize 5 time charter average, then dipped by $284 day-on-day to $35,429 on Monday, with a typical quiet start for the week.
The Baltic Dry Index (BDI) also went down by 0.30% day-on-day, or 10 points to 3,282 readings, due to softening freight rates.
Cooling off in the Pacific and firmer Atlantic
Pacific freight rates had softened after the typhoon season with tonnage supply expected to return, amid the thin cargo list.
There were also market concerns over rising Covid Delta variant outbreaks in Asia, especially in Nanjing, China, which affected demand.
Meanwhile, the Atlantic market welcomed more shipping enquiries with lower ballaster lists, which supported freight rates.
However, the recent correction in iron ore prices also raised doubts on the recovery of more iron ore shipments from the suppliers.
Bunker prices drop amid fresh Covid outbreaks
The bunker prices declined from previous gains, as the price of VLSFO went down by $2/mt day-on-day to $552/mt in the port of Singapore.
The lower bunker prices were affected by weaker crude oil market, as Brent crude prices retreated from $75 per barrel mark and dropped toward $73 per barrel, due to market concerns over fresh outbreaks of Covid Delta variant in China and Australia.
Moreover, trade participants also expected more oil supplies to flood the market as OPEC was estimated to ramp up their oil output to a highest volume in July at 26.72 million bpd since April 2020.