Charter rates rise above 10,000 dollars

The charter rates continue their upward trend and have now broken through the 10,000 dollar barrier. While the rates are up 61 per cent year-on-year, shipping broker Toepfer Transport says the current levels do not represent record earnings but merely levels at which the shipowners make money again. 

The average charter rate for a 12,500 DWT multipurpose vessel reached 10,285 dollars in June, up over fourteen per cent compared to last month when the average rate was just shy of 9000 dollars. The current rate is in stark contrast to the rate exactly one year ago. In June 2020, the rates reached their bottom at just 6381 dollars following the beginning of the corona crisis.

Also read: Charter rates continue to shoot up sharply

The continuous rise in rates has sparked euphoria among shipowners but Toepfer’s lead analyst Yorck Niclas Prehm says the rates do not reflect record earnings. ‘It has to be kept in mind that the current rate levels do not represent record earnings but just reached levels which make shipowners earn money again after some years of operating close to cost recovery levels,’ he says. Prehm also warns that with the summer arriving, a slow down of the growth may be in front of us.

Also read: Multipurpose earnings rally at risk from overordering in competing sectors

Author: Mariska Buitendijk

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