Capesize freight rates dipped slightly on a mixed market with vessels oversupply in the Atlantic, while some improvement were seen in the Pacific basin.
Thus, the Capesize 5 time charter average slipped slightly by RMB 253 day-on-day to $12,029 on Tuesday, after a late selling spree in the weak Atlantic fixtures.
The Baltic Dry Index (BDI) then reversed into slight gains by 0.09% or 1 points to 1,112 readings on slight improvement in freight rates.
Improving Pacific but lengthy ballast list in the Atlantic
The long ballast list had depressed freight rates in the Atlantic and caused many ships to adopt slow steaming to save operating costs.
In the meantime, the shipowners and the charterers remained in the standoff, while many trade participants expect some late push for shipments from the miners toward year-end.
On the contrary, there was decent cargo list in the Pacific, with mining majors actively seeking for vessels to move iron ore cargoes for the early December laycan.
There were also some fresh inquiries from the Japanese trade participants in fixing vessels to move cargoes in the Pacific basin.
Bunker prices rally on better demand
The rally in bunker prices seemed to offer little support to the oversupplied shipping market as VLSFO continued to rise by $2/mt to $361/mt at the port of Singapore.
Meanwhile, there was some signs of better bunker demand in the Middle East regions, due to the drawdown of fuel oil stocks in bunkering hub of Fujairah.
According to Platts, Fujairah’s heavy distillate and residue stock dropped by 8.7% on-week to 8.166 million barrels for the week ended on Nov 16.
The inventory drop came almost at a two-year low or 21 months low and down around 52% since the record high volume at 17.168 million barrels in June this year.