Fed cut has limited effect on Capesize

Capesize market gained slightly on Tuesday, with little impact on dry bulk rates from US Fed emergency interest cut.

There were more cargoes to support freight market, while more shipowners were using slow steaming to save costs.

On Tuesday, the Capesize 5 time charter average went up by $25 day-on-day to $2,197, thanks to late afternoon rally.

 

Stable Pacific market

-More mining majors were appearing in the Pacific market, seeking for vessels despite an overall bearish market.

-Shipowners were heard to ballast ship to the west, while some ships were drifting toward Southeast Asia region, which were heavy for market to digest.

 

Sluggish Atlantic market

-The market outlook did not look very promising due to long lengthy tonnage list in the Atlantic region.

-According to trade source, there were too many ships to compete for cargoes in the Atlantic market.

-Thus, there is less or almost no premium on the freight for second-half march laycans as compared to first half of March laycan.

 

Scrubber fitted ship to benefit from cheaper HSFO  

– VLSFO prices rose slightly by $0.50 to $441.50 per tonne at the port of Singapore, amid volatile bunker market.

-There is more market optimism for high crude oil prices as trade participants expect OPEC to further reduce production to support prices.

-According to Reuters, Brent crude prices may reach back to $60 per barrel if OPEC and Russia-led non-OPEC allies agreed to deepen cuts by up to 1 million barrel per day.