Capesize freight rates softened with holidays season approaching, as market activities slowed down amid thin cargo list.
The Capesize 5 time charter average, then decreased by $908 day-on-day to $39,127 on Monday, as holiday moods persisted in the paper market.
The Baltic Dry Index (BDI) also dropped by $56, down 1.71% day-on-day, to $3,216, due to softening freight rates.
Holiday mood set in with scant market activity
Freight rates slid further on limited shipping activities, as trade participants prepared for the traditional lull holidays season.
However, there was rising market concerns over the wetter-than-average weather pattern in eastern Australia that affected the coal shipments with ship delays.
In the meantime, trade participants were mainly in collection mood with some dubbed the last active trading week for the year, before going for holidays.
Bunker prices rise amid mixed market views
The bunker prices increased amid volatile market, as the price of VLSFO went up by $4/mt to $602.50/mt in the port of Singapore.
The market volatility reflected the spilt market view on Omicron variant and its impact on oil demand. As some health experts and scientists claiming the variant to be mild, but that might not stop countries to adopt stricter lockdown measures to contain the virus spread.
However, there had been more jet fuel demand as more travel restrictions were eased, which resulted OPEC to increase global oil demand forecast to 1.1 million barrels per day for Q1 2022.