Capesize freight rates declined on limited market activities due to waning shipping demand from thin cargo lists in both basins.
The Capesize 5 time charter average, then dropped by $1,897 day-on-day to $19,283 on Tuesday, due to the lack of shipping activities.
The Baltic Dry Index (BDI) also dipped by $126, down 5.53% day-on-day, to $2,151, due to softening freight rates.
Lull season for downtrend freight market
Freight rates moved downward amid sluggish demand, while vessel supply improved in the Pacific market with the easing of port congestion.
However, the shipping demand in moving coal was limited in the Pacific despite Indonesia lifting coal export ban. However, there was still demand for moving iron ores cargoes from the Japanese and South Korean steelmakers.
Similarly, the Atlantic saw limited demand, though there were market concerns about the adverse weather or heavy rains in Brazil that affects vessel supply and iron ore productions.
Bunker prices rise on tight supplies
The bunker prices rose on supply tightness, as the price of VLSFO went up by $7/mt to $654.50/mt in the port of Singapore.
The upticks had piggybacked on recent spike on crude oil prices, due to some supply disruptions in Kazakhstan and Libya.
Moreover, US dollar had depreciated after US Fed stated that it will do little to alter current market consensus, which increased the appeal of commodities priced under the US dollar like crude oil.