Charter rates claw back slowly

The charter rates for multipurpose vessels keep slowly improving from their downfall earlier this year. In the latest edition of Toepfer’s Multipurpose Shipping Index, the average day rate for a 12,500-DWT geared vessel now stands at USD 6545, reflecting an increase of 0.8 per cent compared to last month.

Although the increase is only small, it’s the second month the rates are on an upward trajectory after bottoming out at USD 6381 in June.

In July the average day rate remained flat at USD 6391, but in August the rates increased by USD 101 per day. In comparison, the recovery over the past 30 days has been slower as the charter rates only improved by USD 53 month-on-month.

The charter rates fell sharply earlier this year as a result of the Covid-19 pandemic. Between February and June, the average rates fell by nearly 14 per cent. At the moment, the rates are still 11.7 per cent lower than in February.

Analysts of Drewry earlier said that they do not expect the charter rates to recover to pre-pandemic levels before late 2021. The recovery could take even longer if the virus is not contained, the analysts said.

This article first appeared on Project Cargo Journal, which is another publication of SWZ|Maritime’s publishing partner Promedia.

Author: Mariska Buitendijk

Mariska Buitendijk is one of SWZ|Maritime's journalists as well as the magazine's copy editor.