Capesize rates have continued to be depressed by lack of physical activities this week. However, the paper market for capesize index managed to turn positive for the first time on Monday since late February 2019.
It was the usual time of the year again, when the market takes a break for the Lunar New Year celebration for the week, but it was also rocked by the unfolding events from Vale’s dam collapse incident, which could greatly impact on seaborne iron ore supply.
A capesize bulker has been successfully refloated after grounding in near Virginia Beach on Thursday.
The Baltic Dry Index (BDI) appeared to be a tight rope walker this week on the verge of falling off from the 1,000 mark.
Capesize freight rates rose higher this week, thanks to firmer bunker prices. However, as the week goes by, trade uncertainty started to creep into the market due to weaker freight derivative market.
Market sentiment for Capesize market was on the rise this week despite the widening gap between the physical and paper market.
It was a quiet week for the freight market which neither the Singapore F1 race nor typhoon Mangkhut hitting Hong Kong and Souch China failed to make any impact.
Like a weary boxer, the Capesize freight market crumbled just before the knockout blow of escalating US - China tension.
The Baltic Dry Index (BDI) was off to a good start this week as the index pushed toward the 1,740 readings, thanks to the positive market sentiments from the higher freight derivative markets.
The Baltic Dry Index (BDI) started last week on a firmer footing despite the trade tensions between US, China and Turkey that waned investors’ confidence.