The European short sea market is still in the doldrums, the trend is even declining and shipowners are using unusual methods to keep the business going. The outlook is also modest.
“There has been no improvement in the short sea market this month and overall activity has continued to decline,” according to the latest market report from Hamburg-based broker Toepfer Transport.
Toepfer’s in-house short sea index TSI-35-Index currently stands at €3,914. It refers to hingeless general cargo vessels or mini bulkers between 3,200 and 3,800 tdw. The value represents a decrease of 1.4% compared to the previous month and even 19.9% compared to the previous year. For TSI-52 (4,800 and 5,600 tdw), the comparison with the previous month is neutral: No change, or a minimal increase. At 20.1%, however, the “previous year’s minus” is even greater. The index currently stands at € 4,887 – compared to € 4,886 in the previous month.
Demand for tonnage in all trades remained low recently, and as more and more owners scrambled for the available spot cargoes, the pressure on freight rates increased further, write the analysts at Toepfer Transport.
Shortsea to the Azores?
They also report on rather unusual routes on the shipping side: according to them, a shipping company “that normally sticks strictly to the Baltic Sea-ARA trade lane offered a cargo from the continent to the Azores for the first time”. According to the general assessment of shipowners and carriers, nothing significant is expected to change until the summer, as the economic fundamentals in Europe give no hope of an upturn in import and export volumes.
At the same time, according to the report, many shippers are already expecting the very dry weather of recent months to result in a rather poor harvest of the most common agricultural products.
“Stakeholders are therefore bracing themselves for another 12 to 24 months of reduced rates until the effects of the new and reinvigorated investment and recovery initiatives by the EU and member states reach the market,” Toepfer Transport said.
