Capesize freight rates continued its downward movement, as the physical market flattened out in both basins.
The Capesize 5 time charter average then dropped by $269 day-on-day to $11,934 on Friday, as liquidity dried up in the physical market.
The Baltic Dry Index (BDI) also dipped by 1.47% or 25 points to 1,675 readings, amid softening Capesize freight rates.
Limited shipping demand in both basins
The Pacific market had softened on slim cargo list with few fresh enquires in the market, though there was some improvement in Capesize FFA segment for March.
According to trade sources, the tonnage list remained tight for Pacific region, while Rio Tinto was heard to fix a vessel for mid-March laycan in the key western Australia to China route at around $7.25/wmt.
Meanwhile, shipowners continued to resist in the Atlantic market for the key Brazil to China route for second half March loading windows.
Overall, the Capesize freight rates found support from the robust Panamax market, which was heard to fix some Capesize vessels for Panamax grains cargoes.
Bunker prices plunge from recent rally
Bunker prices fell sharply from previous rally, as the price of VLSFO plunged down by $9.50/mt to $519/mt in the port of Singapore.
Despite the decline in bunker prices, the market participants were still bullish in oil demand recovery for the year, as more countries rolled out their vaccination programs.
Meanwhile, the oil supply remained tight as market estimated around 18 to 40 million barrels of oil production was lost in Texas due to the recent winter storm.