Capesize freight rates extended losses amid market uncertainty with moderate shipping demand and high bunker prices.
The Capesize 5 time charter average, then fell by $509 day-on-day to $14,888 on Monday, due to the lack of fresh shipping demand.
The Baltic Dry Index (BDI) however, rose by $7 day-on-day, up 0.35% day-on-day, to $1,984, due to better freight rates.
More selloffs from big ships
Freight rates moved downward after the big ships came under pressure from the broader sell-off across the market amid escalating geopolitical tension between Russia and Ukraine.
The political risk also pushed crude oil prices higher toward the $100 per barrel mark, which resulted higher bunker prices that affected freight rates.
Hence, more market participants were on the wait and see mode in finding market direction and resulted in poor ballasting trips in the Atlantic market.
In the meantime, the trading activities were subdued in the Pacific market as well, due to slim cargo list with just a few fixtures being concluded in the key western Australia-Qingdao route.
Bunker prices rally further on record-high crude prices
The bunker prices rallied further, supported by strong crude prices, as the price of VLSFO jumped by $18.50/mt to $747.50/mt in the port of Singapore.
Bunker prices followed the high crude prices that were being driven high by possible military conflicts between Russia and Ukraine this week.
The repercussion of the possible military invasion had led market experts to predict further jump in crude prices ranging from $100 per barrel toward the $150/bbl level, with trade sanctions passed to restrict the exports of Russian oil.