Capesize freight rates followed the dip on bearish shipping fundamentals, though there was some improvement in the Pacific market.
The Capesize 5 time charter average, then dropped slightly by $613 day-on-day to $19,845 on Tuesday, despite some rebound in the index.
The Baltic Dry Index (BDI) also fell slightly by 0.33% or 8 points on-day to 2,420 readings, following a string of weak performance on freight rates.
Bottoming up for Pacific market
Despite slow trading activity in the Pacific market, there were some signs that freight rates might bottom up after a series of losses.
As the recent sharp correction on freight rates made Capesize particularly attractive for charterers to move coal cargoes instead of using Panamax vessels.
Moreover, the continuous tenders from Japanese and South Korean steel mills lifted some of the bearish sentiment surrounding the Pacific market with solid demand for iron ore shipments.
However, the Atlantic market continued to come under pressure from the lengthy tonnage list, while shipping demand had yet to catch up with the Brazilian miners in moving iron ore cargoes.
Bunker prices falls despite better crude outlook
The bunker prices dropped for the second consecutive day, as the price of VLSFO dropped by $4.50/mt to $520.50/mt in the port of Singapore.
The declining bunker prices moved against the firm crude oil prices as market participants expected the Iranian oil not to return to the oil market at any time soon even with the lifting of the trade sanctions.
Besides, Brent crude oil prices continued to rise and settled above the $70 per barrel mark, as the American Petroleum Institute (API) recorded a crude oil inventory draw of 2.1 million barrels for the week ended on Jun 4.