Toepfer Transport: European short sea fleet earnings fall further in August

The European short sea fleet earnings have continued to slide in August due to the summer-end slowdown and EU’s ban on Russian coal imports. 

According to the Hamburg-based shipbroker, Toepfer Transport, the average rates for 3,200-3,800 dwt vessels stood at €5,257, while 4,800-5,600 dwt vessels were chartered for an average day rate of €6,203, during the month of August 2022.

August 2022 rates for the 3,200-3,800 dwt vessels edged down 7.1 percent percent from the previous month’s levels. TCE equivalent for 4,800-5,600 dwt vessels slipped 9.3 percent from the previous month. Compared to August 2021, day rates for 3,200-3,800 dwt vessels were still up 27 percent percent while day rates for 4,800-5,600 dwt vessels operating in the European short sea market have increased 18.9 percent.

“In August, earnings in the short sea segment have suffered from a combination of summer-end slowdown and negative impacts to trade resulting from EU bans on Russian energy commodities like coal. The lower demand coincides with reduced grain volumes of the drought-stricken crop in Europe as well as production cuts in the fertiliser sector due to high energy costs,” Toepfer Transport noted in its monthly short sea report.