Capesize freight rates slid further on weakening physical market, due to low shipping demand and bearish market outlook.
The Capesize 5 time charter average then dropped further by $1,657 day-on-day to $16,133 on Thursday, following a short sharp selloff in the paper market.
The Baltic Dry Index (BDI) also went down further by 4.55 % day-on-day or 70 points to 1,470 readings on weaker freight rates.
Growing ballaster lists amid moderate demand
Trade participants were concerned about high ballasters count in the Atlantic market, which lowered freight rates especially for the mid-Feb loading window.
Due to the weak freight rates, charterers were not in hurry to fix as they expected further correction ahead. Thus, the indicative freight rates for Brazil-China route were heard in the $16.50/wmt to $17.25/wmt range.
Meanwhile, bearish market sentiment clouded the Pacific market with moderate shipping demand, though the offering of freight rates remained low among trade participants.
Major miners were heard to be seeking vessels at mid-Feb laycan window at indicative freight of the $6-$6.40/wmt range for west coast Australia-Qingdao route.
Bunker prices dip on poor market outlook
The bunker prices reversed into losses on weak market outlook, as the price of VLSFO went down by $2/mt to $452.50/mt at the port of Singapore.
Crude oil demand was affected by coronavirus concerns due to the slow global roll-out of vaccination and stricter lockdowns in various countries.
Despite the gloom, Wood Mackenzie predicted global oil demand to rise by 7% this year, as the consultancy firm expected the vaccination programs to gather pace later in the year to support economic recovery.