Capesize freight rates declined on limited market activities, as many trade participants went off for the holiday season.
The Capesize 5 time charter average, then dropped up by $1,725 day-on-day to $20,363 on Wednesday, due to the lack of shipping activities during holiday season.
The Baltic Dry Index (BDI) also dipped by $65, down 2.83% day-on-day, to $2,229, due to softening freight rates.
Book clearing ahead of holiday season
Freight rates moved downward amid sluggish demand as most trade participants had cleared their books for coming holiday season.
There was still some decent demand coming from the Pacific market with fresh enquiry to move iron ore from Malaysia to China, but few fixtures were concluded and done at lower rates.
Meanwhile, the Atlantic market was caught in a standoff between owners and charterers, amid thin market activities with little demand to move iron ore in the key Brazil to China route.
Bunker prices rise on tight inventory
The bunker prices jumped on strong crude market, as the price of VLSFO went up by $10.50/mt to $602.50/mt in the port of Singapore.
The crude prices were pushed up by declining US oil inventory as the Energy Information Administration (EIA) reported a crude draw of 4.72 million barrels for the week to December 17.
The declining inventory followed up from previous week draw of 4.6 million barrels, and the total crude oil inventories was down 8% below the five-year average at 423.6 million barrels.
In the meantime, market participants were also monitoring the situation of Omicron spread which reached new height in numbers of cases in UK and some EU countries that threatened oil demand recovery.