Capesize freight rates continued to move downward on scant market activities due to the Lunar New Year holidays.
The Capesize 5 time charter average then dropped by $610 day-on-day to $10,749 on Wednesday, amid thin market activities.
The Baltic Dry Index (BDI) moved flattish and dipped slightly by 0.23% or 3 points to 1,303 readings, due to weak Capesize rates despite better Panamax and Supramax rates.
Muted market at the absence of Chinese trade participants
Capesize freight market came under pressure from thin market activities as Chinese trade participant went off for holiday celebrations.
Hence, there were limited shipping inquires in the Pacific market, with only Rio Tinto heard to be seeking vessels for the western Australia to China route.
Meanwhile, the Atlantic market were affected by lengthy ballaster list that resulted in supply glut in February, which might rollover to early March as well.
In the meantime, there was also a standoff between shipowners and charterers, amid the muted shipping market.
Bunker prices’ bull run continues on market optimism
Bunker prices rallied on better crude prices, as the price of VLSFO rose by $1/mt to $502/mt in the port of Singapore.
However, the firm bunker prices offered little supports to the freight rates but benefited from market optimism on oil demand recovery in 2021 as a Covid-free year.
Moreover, US oil consumption remained high as the crude inventories registered a drop of 6.6 million barrels in Feb 10, against market expectations of a 985,000-barrel increase, according to Energy Information Administration (EIA).