Charter rates for multipurpose vessels bounce back a little

The charter rates for multipurpose vessels have bounced back a little, shows Toepfer Multipurpose Shipping Index. Rates increased slightly in August to USD 6,492 per day for a 12,500 dwt geared vessel.

Day rates for multipurpose vessels have fallen by 14% since the start of the coronavirus outbreak. Prices seem to have bottomed out in June, reaching USD 6,382 per day. The rates remained flat in July and now have bounced back a little jumping up by USD 101.

Whether or not this is the beginning of a true recovery remains to be seen. Shipowners say the market currently can only be described as uncertain.

Shipping analyst Drewry recently said it does not expect the day rates to fully recover before the end of 2021. “This year the global economy will record a sharp recession over the year with the latest assumptions for global GDP at -5% when compared to 2019. The decline is followed by a V-shaped economic in 2021 which puts global GDP up 6.5%, with weakening but positive growth for the longer term”, the analyst said, adding that it expects dry cargo demand to follow a similar pattern.

“Dry cargo demand as a whole is expected to decrease by some 4.5% compared to 2019 as container port handling and steel production, and therefore associated imports and exports, collapse over 2020 due to the twin effects of Covid-19 and lower crude oil prices. Thereafter the return to positive growth is swift as countries come out of lockdown, manufacturing activity resumes and business sentiment improves”, the analyst firm states.

Author: Tobias Pieffers