Capesize freight rates rebounded from recent weakness and after a series of corrections, during the last trading weeks for the year.
The Capesize 5 time charter average, then jumped up by $670 day-on-day to $23,283 on Monday, as the market bottomed out from recent slump.
The Baltic Dry Index (BDI) however, dipped slightly by $8, down 0.34% day-on-day, to $2,371, due to softening freight rates.
Holiday moods prevail in freight market
Freight rates got off a slow start of one of the last trading weeks for the year, with lesser trade participants as they went for holidays.
Despite their absence, there was some rebound in freight rates, after the recent slump that signaled the market was bottoming out despite thin cargo list and long tonnage list.
Thus, trade participants deemed the freight rates upticks as temporary, in view of weak market fundamentals both in the Pacific and Atlantic markets.
Bunker prices dip on Omicron lockdown concerns
The bunker prices took a dive on bearish market sentiment, as the price of VLSFO went down by $13.50/mt to $594.50/mt in the port of Singapore.
The lower bunker prices followed the selloff in the crude market, as the market concerns for Omicron variant grew with possible acceleration of more lockdown measures being implemented on countries that hurt oil demand.
Thus, Brent crude prices moved downward toward the $70 per barrel mark, as many EU countries considered the cancellation of mass celebrations for the Christmas and New Year holidays with more social restriction measures.