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 $7,992 per day in April, representing a rise of just 2.5% compared to the almost 15% rise seen in the previous month. Drewry’s Index is up 22% since the start of the year and 35% since April 2020 . Drewry expects the index to rise a further 2.6% in May to reach $8,200 per day.
Rates for the larger dwt sectors of the fleet continued to rise over April, albeit at a much slower rate to March. This was mainly due to a slowing in activity, as most carriers reported being fixed through to June, although this did lead to some phenomenal outlier rates for the very few spot vessels available. The sector was also adversely affected by the fall in rates on the Handy market. Meanwhile the smaller, mainly short-sea, vessel market was steady over the month with little movement as supply mostly balanced demand and rates remained firm.
Drewry’s assessment is based on period charter hire rates and, while we remain optimistic for the longer term outlook for the sector, there are some downside risks for the shorter term, not least Covid-19 related restrictions being imposed in India and Japan and the ongoing issues in Mozambique. Both of these could cause some disruption to the oil and gas sector in the medium term and consequently project cargo demand.
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.