Capesize freight rates slipped up after recent improvement, amid limited shipping activities in both basins.
The Capesize 5 time charter average, then inched down by $298 day-on-day to $31,811 on Friday, amid a choppy session.
The Baltic Dry Index (BDI) then dropped by $37, down by 1.30% day-on-day, to $2,807, due to softening freight rates.
Improving demand in both basins despite weather concerns
Freight rates moved on flattish movement, though market outlook had improved with recovering shipping demand as compared to previous weeks.
According to trade sources, shipowners preferred to take a front haul to get their vessels covered for the December holiday season, while operators were heard to prefer to sell vessel for December dates and buy back derivatives for December instead.
Meanwhile, there was growing demand to move iron ore and bauxite cargoes out of west Africa, amid the limited shipping demand seen out of Brazil and South Africa.
Despite the optimism, there was some market concerns over weather conditions in northern China with cold waves and more rainfalls in southern China that might affect ports operation and shipping navigations.
Bunker prices inch down on volatile crude
The bunker prices fell on volatile crude prices, as the price of VLSFO dropped by $1.50/mt to $628.50/mt in the port of Singapore.
The price decline was linked to recent corrections in crude prices as the US was in limbo in whether to release its strategic oil reserves to calm crude prices amid growing inflations.
As the US consumer inflation (CPI) grew to its fastest rate in 30 years with a yearly hike of 6.2% in October, while the strong dollar drove down foreign demand on the US dollar denominated commodity.