Capesize freight rates continued to soften from the sluggish physical market due to poor shipping fundamentals.
The Capesize 5 time charter average, then dropped by $475 day-on-day to $20,458 on Monday, after a lacklustre trading session.
The Baltic Dry Index (BDI) also fell further by 0.41% or 10 points on-day to 2,428 readings, due to weakening freight rates.
Declining freight rates yet to find bottom
Due to the weak shipping fundamentals, many trade participants expected further freight rate correction ahead, especially in the typical low steel demand season among Chinese market.
Hence, there was lack of fresh enquiry for iron ore shipments in the Brazil to China route, while the growing ballaster list placed further pressure on freight rates.
There was some demand in the Pacific market from the major miners, but they were done at lower rates, while fresh shipping demand remained lukewarm.
Bunker prices dip slightly despite firm crude recovery
The bunker prices dipped on a volatile market, as the price of VLSFO dropped by $3/mt to $525/mt in the port of Singapore.
Despite the slight decline, trade participants remained confident on the firm bunker prices due to the stronger crude market as global consumption improved.
Thus, Brent crude prices still settled above the $70 per barrel mark, as oil consumption recovery remained on track for the US, China and Europe.