In MPP shipping, declining demand for cargo space is dampening confidence that rate levels can be maintained.
The index for time charter rates for F-Class multipurpose vessels (12,500 tdw, 240 t lifting capacity) published by Hamburg-based broker Toepfer Transport has fallen slightly compared to the previous month: There was a drop of 1.69% or $65 to $12,753.
The reason for this appears to be a decline in demand: “The optimism that the market stability of recent months will continue appears to be waning. This is reflected in the declining demand from shippers in trading areas that have driven the markets in recent months,” the broker says. The most significant decline was seen in trade between the Far East and America, as the various transition periods for the introduction of US import tariffs expired and with them the race to move freight quickly and ahead of schedule. Further developments are difficult to predict, and Toepfer Transport is cautious: “It remains to be seen to what extent the change in demand will affect charter rates, but we do not expect an upward trend in the coming months.”
Market participants do not really expect an improvement in the short term either. Toepfer Transport regularly surveys expectations for the next six and twelve months and maps them in the TMI-P6 and TMI-P12 indices. The former is currently down 0.51%. What is striking, however, is that the medium-term picture is somewhat different: The TMI-P12 is showing a plus of 3.15%.
The restraint is also evident in the second-hand market, where there were no changes in prices. According to the Toepfer Transport analysis, people are still paying $10.75 million for a 9,000-tonner, $16 million for a 12,500-tonner and $23 million for the larger units in the 30,000 tdw class. Newbuild prices are also stable at $20.75 million for a 9,000-tonner, $30 million for a 12,500-tonner and $50.5 million for a 30,000-tonner.
