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ANALYSTS SEE MOMENTUM FOR 2021 MPV RATES Multipurpose vessel time charter rates are strengthening into the new year, according to separate reports from analysts Drewry Maritime and Toepfer Transport. Research consultancy Drewry Maritime forecasts that MPV charter rates will rise 1.4 percent in January, and follows a strong increase in December. “The Drewry Multipurpose Time Charter Index increased to $6,289 per day in December, representing a rise of 3.5 percent compared to the previous month … Drewry expects the index to rise a further 1.4 percent in January to reach $6,375 per day,” said Susan Oatway, senior analyst for multipurpose and breakbulk shipping at Drewry. Toepfer Transport said MPV time charter rates continue to strengthen into 2021, with rates topping US$7,000 for the first time since March 2020, reaching US$7,005 in January on an average six- to 12-month time charter basis, a US$276 rise from December. Shipping rates fell to a low of US$6,381 in June, in the wake of the onslaught of the Covid-19 pandemic, Toepfer said. Indicators show MPV demand steadily improving since, as routes reopened and pressure on operators eased. “The MPV business has always demanded an extraordinary ability to adapt to a constantly changing environment,” said Yorck Niclas Prehm, head of research at Toepfer. “In this very special time, having this skill is a big advantage compared to other maritime segments.” Drewry’s index was down 3.3 percent for the full year. “The market in most sectors has lost
Indicators suggest operators are returning to traditional business areas in 2021, with breakbulk firms seeing early upside. CREDIT: BBC CHARTERING
momentum over the end of the year, and we expect it to take a little time before it regains it. However with reports already coming in that Chinese New Year might not be the full stop it usually is, there is a good level of expectation for the short-term rate forecast,” Oatway added. Trends suggest container lines will return to traditional business areas in 2021, though MPVs continue to see upside. Drewry said that rates rose in all sectors over December although some disparity remained between larger heavy-lift capable tonnage and smaller vessels. “The larger vessels benefitted from the container lines tapping into the MPV sector to cover short-term tightness, while the smaller, more short-sea focused
vessels saw a weakening of demand as the Christmas holidays drew nearer,” Oatway said. Toepfer says indicators suggest operators are returning to traditional business areas in 2021, with breakbulk firms seeing early upside. “Part of this is due to lessening competition from container carriers for multipurpose cargoes, as they move away from multipurpose and smaller project cargo and back to their traditional stronghold … at least for the short term,” said Kyriacos Panayides, managing director of AAL. Toepfer predicts onshore and offshore wind may drive a “record year” in 2021 with regard to total volume and the number of seagoing shipments.
TOEPFER TRANSPORT MULTIPURPOSE SHIPPING TIME CHARTER INDEX
RATE PER DAY
The index is based on a 12,500-deadweight-ton MPP/HL “F-Type” vessel for a six-to 12-month time charter, and represents the monthly assessment from operators, owners and brokers. $7,578
$7,490 $7,515
$7,547
$7,415 $7,554
$7,393
$7,221 $6,863
Aug
Sep
Oct
Nov
Dec
Jan 2020
Feb
Mar
Apr
$6,441
Jun
Jul
Aug
$6,931
$6,615
$6,492
$6,381 May
$6,545
$6,391
Sep
$7,005
$6,729
Oct
Nov
Dec
Jan 21
Source: Toepfer Transport, www.toepfer-transport.com
6 BREAKBULK MAGAZINE www.breakbulk.com
ISSUE 1 / 2021
