Charter rates for multipurpose vessels remain stable so far
Despite the coronavirus, a very low Baltic Dry Index and problems at Zeamarine, charter rates for multipurpose and heavy-lift vessels so far seem to remain stable, according to Toepfer’s Multipurpose Shipping Index.
Toepfer’s Multipurpose Index measures the average daily of a standard 12,500 dwt MPV/HL vessel. Mid-February the index stands at an average daily charter rate of USD 7.385, which is only USD 8 below the average rate recorded in January. In comparison with December, the index has dropped USD 169 but this difference is also attributable to traditional seasonality. The first quarter is always much slower than the fourth following the holidays and including the Chinese new year break.
Uncertainty
If and how the rates will be affected by the coronavirus over the next few weeks is uncertain but with other sectors heavily impacted, the industry should prepare itself for fiercer competition, Drewry’s Multipurpose & Breakbulk Shipping Susan Oatway told PCJ last week.
“There is no way of knowing the full impact of the coronavirus without having a view on its longevity”, she said. “In the worst case, the disruption to the supply chain will be huge, particularly for those sectors with no viable alternative sources such as electronics, household appliances and auto parts. If it is short-lived the pent up demand should be strong and China, in our opinion, will do its best to prop up growth via fiscal stimulus. In the meantime, as industrial production slows carriers are having to scale back capacity sharply. For the MPV/HL sector, the effect on the container and bulk carriers will have a significant effect due to the increased competition for commodity demand.”
morenews
Project Cargo Summit goes to Bilbao
Following the successful outing in Bremen in 2023, ProMedia and its Project Cargo Summit team have turned their sights to a new adventure and have partnered with the Port of Bilbao. So for the 2024 edition of the Project Cargo Summit, project cargo, breakbulk and heavy lift industry specialists will gather in Bilbao for two… Read more ›
Project Cargo Summit 2024 registrations open
The time has come, we have opened registrations for this year’s edition of the Project Cargo Summit. As it was previously unveiled, the Port of Bilbao will be our host on September 17 and 18. There have been some changes since the announcement.
Project Cargo Summit 2024 programme takes shape
Excitement is building for the Project Cargo Summit 2024 in Bilbao, Spain! The dates are locked in (September 17th and 18th), the speaker list is filling up fast, and preparations are underway to make the “Project Cargo Summit 2024: Mega Cargo, Mega Solutions” an unforgettable event.