Toepfer foresees good news on multipurpose demand side
Multipurpose and project carriers can pour an extra glass of champagne on New Year’s Eve as the outlook for 2020 is positive, according to shipbroker Toepfer Transport. “There’s good news on the demand side as there are some big projects coming up”, head of research Yorck Niclas Prehm tells PCJ.
As of December, the average daily charter rate for a multipurpose stands at USD 7.554, Toepfer’s Multipurpose Shipping Index shows. Although the average rate in December was slightly lower in comparison to the month before, the charter rates have been on an upward trajectory in the fourth quarter. In September this year, the average charter rate amounted to USD 7,490.
Looking at 2019 overall, the average charter rate has consistently hovered around USD 7,500. “We expect that to continue in the first half of 2020 as the operators are faced with uncertainties regarding 2020; Will they be able to recuperate the extra fuel costs involved with the new legislation”, says Prehm.
In the second half of 2020, however, Toepfer expects the rates to improve as there are positive developments on the demand side. “The general outlook is fairly optimistic”, says Prehm. “The rates are stable and the cargo flows are growing. There’s very good news on the demand side as there are some big projects coming up.”
In Australia, BHP’s South Flank mining project is expected to result in roughly 420,000 freight tonnes, while in Canada the LNG Canada Project is estimated to require transport of a million freight tonnes. With increased energy demand and a desire for cleaner energy, the renewables and LNG markets, in particular, show a promising outlook.