Capesize freight rates dipped on the slow physical market, while the market remained at steep contango with some expectation that it would turn positive again.
The Capesize 5 time charter average, then dropped by $639 day-on-day to $17,821 on Thursday, despite some improvement in the Pacific market.
The Baltic Dry Index (BDI) then fell by $22 day-on-day, or down 0.91% day-on-day to $2,403, due to lower freight rates.
Pacific basin to improve further on coal demand
Freight rates continued to improve in the Pacific market, which caused more shipowners to keep their vessels in the region, rather than ballasting toward the Atlantic market.
This was due to the good demand of moving coals from Indonesia and the loading iron ores from Australia, which kept ships from heading toward west like Brazil or South Africa.
In the meantime, the ballaster list was heard to be lengthy on the Brazil front for the whole of May dates, due to some spot vessels drifting between South Africa and Brazil.
Bunker prices rise after EU to take tougher stance on Russian oil
The bunker prices continued to rise on higher crude market, as the price of VLSFO hiked up by $1/mt to $844.50/mt in the port of Singapore.
EU seemed to be taking a tougher step in banning Russian oil imports, after viewing Russia cutting off gas to Poland and Bulgaria as a blackmail.
The recent spat caused crude prices to draw many supports as market feared that there will be a full-blown energy blockade to Russian energy products.