Capesize paper market slid into losses amid bearish market sentiment over countries’ lockdown that lowered fixtures.
As such, the Capesize 5 time charter average dropped by $199 to $3,903 as the shipping market cooldown with fewer trading activities.
In the physical Pacific market, the shipping was still deemed as healthy with decent volume, but the region was still over tonnage.
As such by Wednesday, the freight rate for a Capesize ship to move 170,000 mt of iron ore from Saldanha Bay to Qingdao was assessed at $7.40/wmt, unchanged day-on-day.
Shipping disruption for countries’ lockdowns
Nothing fresh came out of South African market as the country entered a 21-days lockdown phrase to contain the coronavirus pandemic.
More port disruptions are also expected in India as the country is in a lockdown for 21 days, which lowered ballasting interest from shipowners.
India’s steel majors also decided to cut their production, prompting concerns over less coal movement to the country.
However, some trade sources stated that there might be some ships opening at the east coast of India seeking for cargo movement to Australia.
Bunker price drops despite effort to end price war
VLSFO prices continued to drop by $1.50 day-on-day to $281.50/mt at the port of Singapore, amid crude oil price volatility.
Brent crude prices dipped slightly from $30 per barrel, while WTI crude slid toward $23 per barrel level, amid the ongoing oil price war.
However, oil prices did jump by little due to the introduction of US stimulus package at $2 trillion as well as US lawmakers pressured Saudi Arabia to end the price war.