Capesize freight rates continued to stay afloat with slight gains, though there was some softening in the Pacific and the Atlantic basins.
The Capesize 5 time charter average, then inched up by $294 day-on-day to $31,266 on Monday, byproduct of the recent rally in the FFA market.
Slow market activities despite healthy cargo list
The Capesize market started the week sluggish with softening freight rates, while most trade participants remained on the sidelines in waiting for clearer market direction.
Hence, the freight rates for Pacific market continued to drop, despite the healthy cargo list for iron ore and coal. There was also increasing enquiries from South Korean end-users seeking shipments out of East Australia.
Meanwhile, the market activities were more muted in the Atlantic market with flat movement in the key Brazil to China route, amid long tonnage supply.
Bunker prices rise amid market uncertainty
The bunker prices rallied further from firm crude market, as the price of VLSFO rose by $8/mt on-day to $551/mt in the port of Singapore.
Crude oil market was still in the limbo after the failed output talks among OPEC members, but nevertheless crude prices still hovered around the $75 per barrel mark.
There was also growing concerns over the resurgence of new Covid variant spread among Asian countries that lowered oil demand and trade activities, after renewed lockdown in Tokyo, Japan.