Although the general conditions remain difficult, charter rates in the MPP shipping sector continue to remain stable. The TMI market index from Hamburg-based broker Toepfer Transport is even rising slightly.
The TMI index currently stands at $12,841, up $158 on the previous month. It shows time charter rates for the “workhorses” of the industry: the F-Class multipurpose freighters with 12,500 dwt and 240 t crane capacity.
“Despite the turbulence caused by the situation in the Arabian Gulf – which drove up fuel prices and led to supply bottlenecks in the most important bunker ports – the TMI recorded only minimal movements in time charter rates,” states the latest market report from Toepfer Transport.
The analysts go on to write that this stability runs counter to the development of freight rates, which are clearly under pressure in most trade lanes. While many shipping companies are complaining about increased competition as well as lower freight rates and utilization rates on various trade routes, demand from China remains high. “It should be noted that although there is a correlation between time charter rates and freight rates, the two variables follow completely different mechanisms,” it says.
The medium-term charter expectations currently look relatively positive. The TMI-P6 and TMI-P12, which reflect expectations for the next six and twelve months, show an increase of 2.53% and 2.67% respectively.
The report also focuses on ship prices. Newbuilding prices are largely determined by cost pressure from shipyards, as both labor costs and equipment prices continue to rise, according to the report. At the same time, the unfavorable exchange rate between the US dollar and the renminbi continues to weigh on the earnings of Chinese shipyards, further reducing their already moderate margins. “The shipyards are nevertheless sticking to their pricing and are generally not prepared to grant price reductions,” is Toepfer Transport’s assessment. For a new 9,000-tonner you still pay $21 million, for a 12,500-tonner $30.25 million and for a 30,000-tonner $50.75 million.
Prices on the second-hand market are also stable and have not changed recently. The benchmark for a ten-year-old 9,000-tonner is $9.75 million. For 12,500-tonne trucks, the price is still $14.5 million, and for the larger units in the 30,000 dwt class, the price is $23 million.
