Capesize rates continued to move at downtrend manner amid the short trading week with muted physical activities.
The Capesize 5 time charter average then dropped by $493 day-on-day to $19,204 on Tuesday, despite some showing some strength at late afternoon session.
The Baltic Dry Index (BDI) still reflected some strength in the dry bulk market with slight gain of 0.27% day-on-day to 1,510 readings.
Mixed market with no clear direction
Due to short trading week, the freight market was slowed despite some strength shown in the paper market.
In the Pacific market, there was still some decent shipping demand with Rio Tinto heard to be seeking vessels from west Australia to Qingdao for end-August laycans.
Thus, the freight rate for a Capesize ship to move 170,000 mt of iron ore on the Port Hedland-Qingdao route was assessed at $8.10/wmt, drop 25 cents/wmt from Aug. 7.
Meanwhile, there was still a standoff between charterers and owners in the Atlantic market that lowered freight rates, amid the lengthy tonnage list.
Bunker prices rebound on market optimism
VLSFO prices rebounded by $5.50/mt day-on-day to $353/mt at the port of Singapore, due to market optimism over oil demand.
Crude oil prices had risen in view of another round of US stimulus packages to support the coronavirus-hit economy, with proposals of capital gains tax cut and income tax cut for middle-income families.
Thus, the Brent crude oil prices went up higher toward the $45 per barrel level, while WTI crude went higher toward the $42 per barrel mark.