Capesize paper market continued the downside with lower physical fixtures in view of coming May Labour holidays across countries.
Due to lack of physical trading, the Capesize 5 time charter average dropped by $89 to $8,292 on Monday.
Thus, many trade participants were expecting a sluggish week ahead of the many holidays in coming days.
The Pacific market continued to be supported by a healthy cargo list, as mining majors like Rio Tinto and FMG remained in freight market seeking to move iron ore cargoes out of Australia.
No fresh activity in Atlantic market
The Atlantic market was muted as well with most operators moved to June windows for the key Brazil to China route, while the ballaster list was a bit lengthy for end-May laycans.
As there was not much cargo left in May, thus most trade participants were talking on June dates for the Tubarao to Qingdao route.
As such, the indicative freight on the Brazil to China route was heard in the low/mid-$10s/wmt level.
Another oil crash ahead?
VLSFO bunker prices continued to slide by $5.50 to $220/mt in the port of Singapore, due to bearish market demand.
Brent crude prices stood firm on the $20 per barrel mark, providing some hope for the depressed oil market. However, the WTI barely held firm at the $11 per barrel level, amid the supply glut and lower demand.
According to Goldman Sachs, the oil market may face another crash, as global oil storage is expected to be filled to the brim within the next three weeks.