Capesize rates resumed its correction phrases for the short week with Singapore on public holiday at Friday.
The Capesize 5 time charter average then dropped further by $270 day-on-day to $17,014 on Monday, after a sluggish start of the short trading week.
Likewise, the Baltic Dry Index (BDI) slipped 1.82% day-on-day to 1,293 readings on the weakness of Capesize market.
Worsening Covid-19 as swing factor in shipping
Shipping outlook had become bearish in view of the rising Covid-19 cases that may potential disrupted port operations, crew replacements and shipping demand.
To curb the third wave of Covid-19 cases, Hong Kong had issued cargo shipping crews docking at its port to be subjected for 14 days compulsory quarantine with effect from July 29 onwards.
The implementation brought some scheduling issues for miners and shipowners in term of crew replacement and might encourage other coronavirus-affected ports to enforce similar measures as Hong Kong.
In the meantime, Capesize freight rates remained stagnant and stayed low in both Pacific and Atlantic market, where little fresh activities were reported amid the shipping supply gut.
Bunker prices dip on poor shipping outlook
VLSFO prices went into correction phrase since the start of the week, recorded a drop of $2.50/mt to $348/mt at the port of Singapore.
Market participants were trying to digest the tougher quarantine measures undertaken by Hong Kong, which might inspire other countries to impose similar measures to curb the coronavirus spread.
Thus, the market expected that there will be shifting of bunker demand away from Hong Kong to other ports in the region in the near term.