Capesize freight rates dipped lower in the oversupplied market, despite some comeback during the trading session.
The Capesize 5 time charter average, then dropped down by $464 day-on-day to $27,309 on Tuesday, due to selling pressure during the session.
The Baltic Dry Index (BDI) also slipped by 1.40% day-on-day, down 45 points to 3,179 readings, due to the weakening freight rates.
Mixed market outlook amid thin activities
Market outlook drew mixed reviews despite some recovery in freight rates, though the basins remained oversupplied.
Demand was low for the basins as well, though Pacific basin held out with healthy cargoes list with some fresh enquiries from miners and steelmakers.
However, the Atlantic freight rates were dragged down by long ballast list for July, though there was some improvement as shipowners preferred to keep ship in the Pacific rather than ballasting them to the sluggish Brazilian market.
Bunker prices continue to rise amid crude volatility
The bunker prices continued to rise on better crude market, as the price of VLSFO increased by $4/mt on-day to $559.50/mt in the port of Singapore.
Despite higher bunker and crude prices, some market participants were concerned about more market volatility ahead, after OPEC’s fallout to ramp up production.
The deadlock on output talks may create more market uncertainty, while some trade participants speculated a price wars among members that destabilization crude prices.