Capesize rates slipped again over market concerns on the deteriorating physical market with long tonnage list in the Pacific market.
On that note, the Capesize 5 time charter average dipped by $680 day-on-day to $26,964 on Monday, as the paper market came under pressure on declining physical market.
Following the decline, the Baltic Dry Index (BDI) dropped by 0.99% day-on-day at 1,792 readings.
Atlantic market as the main driver
Many trade participants expect further corrections of freight rates due to long tonnage list in the Pacific market.
However, some participants think differently and predicted that the port congestion in China might be an upside for the Pacific market.
Meanwhile, the trade participants were more hopeful of the Atlantic market due to tight tonnage list especially for the mid-August loading.
There was also some early unfixed ballasters for Brazil and this may attract some shipowners to ballast their ships from the Pacific for the trans-Atlantic voyages.
Bunker prices rise despite high stockpile
VLSFO prices hiked up by $6.50/mt to $337/mt at the port of Singapore, despite high buildup of onshore residue stocks in the city-state.
According to Enterprise Singapore, the commercial onshore residue stocks reached 26.666 million barrels for the week ended at July 8, up 6.1% and at a three-year high.
Going forward, bunker prices are likely to face further correction due to increase in crude supply as OPEC + seek to ramp up production in August by 2 million barrel per day.