Capesize freight rates slid downward on muted physical market with Lunar New Year holidays round the corner.
The Capesize 5 time charter average then slumped further by $1,251 day-on-day to $12,802 on Wednesday, after a choppy trading session.
The Baltic Dry Index (BDI) also continued to dip further by 3.84% day-on-day or 53 points to 1,327 readings on weak freight rates.
Growing ballaster list to weigh down freight rates
Freight rates were softened on both basins from limited market activities, amid growing vessel supply.
The Pacific market, however managed to get more enquiries for iron ore and coal shipments out of Australia as well as from Russia.
Despite the healthy demand, the indicative freight rate for Capesize for the key western Australia to China route were heard to be around $6/wmt.
On the contrary, the Atlantic market faced a growing ballaster list as many vessels were heard to sail west of Singapore.
However, the lengthy ballaster counts were heard not to have a huge impact on the Brazilian market yet, due to the possibility of an increased activity among other loading ports, such as those from West Africa or North Atlantic.
Bunker prices remain high on better outlook
The bunker prices hiked up on better market oil outlook, as the price of VLSFO rose by $4/mt to $473.50/mt in the port of Singapore.
Brent crude prices raced toward the $59 per barrels level at almost a one year-high, after the US oil inventory dropped to almost a 11-months low at 475.7 million barrels, according to Energy Information Administration.
Meanwhile, OPEC+ expects the oil market to be in deficit throughout 2021 and anticipated a peak of 2 million barrels per day during the month of May.