Capesize freight rates dipped further on limited market activities, while vessels supply had been gaining grounds after easing of port congestions.
The Capesize 5 time charter average, then dropped by $744 day-on-day to $10,169 on Wednesday, due to the lack of shipping activities.
The Baltic Dry Index (BDI) also dipped by $74, down 4.50% day-on-day, to $1,570, due to softening freight rates.
More vessels supply as port congestion eases
Freight rates moved downward amid sluggish demand, while vessel supply continued to improve in the Pacific market with the easing of port congestion in China.
On the eve of an oversupplied market, shipping demand did not check in to balance the market, as demand for moving coals remained low in the Pacific market, while there was a lack of moving iron ore cargoes out of Brazil.
However, there was still some strength left in the Pacific freight market, as shipowners chose to ballast out of the basin, partly due to the slow iron ore demand as Chinese participants prepared for Lunar New Year holidays celebration in early February.
Bunker prices rise toward the $700/mt mark on strong crude prices
The bunker prices continued to rise on supply tightness, as the price of VLSFO went up by $5.50/mt to $691.50/mt in the port of Singapore.
The price upticks had left some optimistic trade participants to expect the VLSFO prices to break the $700/mt levels soon on the persisted tight supply.
Similarly, some market analysts also suggested that crude prices to hit the $100/bbl mark soon, in view of falling global stockpiles, while producers struggled to maintain output due to adverse weather, outages or geo-political issues.