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.