Capesize freight rates continued to fall amid market uncertainty and profit-taking in the paper market.
The Capesize 5 time charter average, then went down by $1,143 day-on-day to $82,722 on Monday, despite good market fundamentals.
The Baltic Dry Index (BDI) also dropped by $38, down 0.69% day-on-day, to $5,488, due to weakening freight rates.
Extreme weather to affect shipping activities in South China
The trading week was shortened with public holidays in Asian countries and Brazil, while shipping activities were delayed by Tropical Storm Lionrock in southern China regions.
Thus, there was fewer shipping enquiries amid the tight tonnage market, with slim cargo list in the Pacific and minimal exchanges in the Atlantic market.
However, trade participants expected more coal shipping demand in relations to the power crunch in China, as well as heavy rains that suspended around 60 coal mines in Shanxi province.
Bunker prices rally on record-high crude prices
The bunker prices rallied further on strong crude prices, as the price of VLSFO hiked up by $15/mt to $606.50/mt in the port of Singapore.
The bunker prices followed the seven-year high Brent crude price at around $83 per barrel, as the energy crunch persisted among global economies.
Some bullish market participants expected crude prices to hit $90 per barrel during winter season for heating demand, though the commodity faced some headwinds in rising US crude inventories.