The Drewry Multipurpose Time Charter Index tracks one-year period charter rates across a basket of vessel types and sizes and forecasts the market movement over the coming month. The vessel types include breakbulk and project cargo ships.
The Drewry Multipurpose Time Charter Index increased to $6,134 per day in November, representing a rise of 2.8% compared to the previous month. Over the year to November Drewry’s index is down 6.6%. Drewry expects the index to rise a further 3.7% in December to reach $6,360 per day.
Drewry Multipurpose Time Charter Index (US$ per day)
Source: Drewry Multipurpose Forecaster
Rates rose in all segments over November, with a recorded improvement of almost 3% to average $6,134pd. In the smaller, more short-sea orientated sector, momentum built progressively through the month and there is a good expectation for the continuation of this firm market to year-end, as charterers look to cover December orders before the holidays. Rates averaged around $5,500pd over the month and were up almost 2% compared to October.
For the larger, more heavylift capable vessels, there are some signs that the shortage of capacity in the container sector is having a positive effect. Although some of that capacity shortage is equipment based, congestion on the Panama Canal is exacerbating the situation and there have been a few reports of the lines chartering MPVs.
Whilst we can see there is a definite correlation with recent rate rises, it is worth noting that the so-called container-friendly MPVs are few and far between. Moreover, as container shipping’s capacity constraints are more container equipment than vessel space related, the likelihood is that shippers will move some cargoes back to breakbulk, opening this potential demand surge to the rest of the MPV fleet. Either way rates in this sector are on the up and we expect this to continue to the year end with average rates across the main sectors rising to around $6,300pd.
For access to the latest charter rates and forecasts across a range of multipurpose vessel types subscribe to Drewry’s Multipurpose Forecaster. Published quarterly it provides 5-year forecasts and market updates for the global Breakbulk and Heavy Lift shipping markets, together with supplementary monthly updates of the latest market developments, including charter rates and asset values.