Capesize freight rates continued to slide from recent rally, due to cooldown of market activities after upticks.
The Capesize 5 time charter average then fell by $612 day-on-day to $16,741 on Friday, after some corrections in the market.
The Baltic Dry Index (BDI) also dipped slightly by 0.51% or 10 points to 1,960 readings, amid softening freight rates.
Slight adjustment after rally
Despite the weakening freight rates, most trade participants were optimistic of better shipping demand, due to higher rates recorded in smaller vessels like the Panamax and Supramax market.
There were even market talks of more Capesize vessels being used for loading Panamax and Supramax cargoes, due to growing grains demands amid the lack of smaller vessels.
Market participants also expected better shipping demand out of Brazil toward the end of rainy season, however freight rates were still affected by the long ballaster lists, though it had been reduced with some ballasters being diverted to West Africa.
Meanwhile, the healthy cargo list remained in the Pacific market, with enquiries of coal shipping demand from east Australia and Indonesia, while iron ore shipments were active from western Australia.
Bunker prices rise on tight supply concerns
Bunker prices rallied on better market outlook, as the price of VLSFO bounced up by $5.50/mt to $530.50/mt in the port of Singapore.
Market optimism over oil demand was supported by fast rollout of vaccines that resulted Brent crude oil prices to reach toward the $70 per barrel level.
Bunker prices also got a boost from refinery outage in Fujairah, one of the world’s largest bunkering hub, which is slated to tighten supplies in near term.