The charter rates for multipurpose vessels keep skyrocketing and have gained further momentum. Day rates jumped by more than 10% month-on-month and now almost exceed the USD 9,000 barrier. 

The average day rate for a 12,500 dwt geared multipurpose vessel has reached 8,984 dollars in May, according to Toepfer’s Multipurpose Shipping Index. That is an increase of 11% compared to last month. Year-on-year the charter rates are up by 40%.

Toepfer-analyst Yorck Niclas Prehm expects the booming demand to last for at least the next few months. “The demand for cargo space is booming and so are the cargo enquiries for the next months. Large operators try to keep the tonnage they have and to add up more, causing only very few vessels to appear on the spot market”, he said last month.

Prehm now adds that many shippers fear a further tightening of available cargo space. “There is almost no tonnage available in the open charter market since most operators try to extend their expiring charters at an early stage in order to avoid losing tonnage to competitors”, Prehm says.

There are two major developments that may impact the development of charter rates: the shortfall of cargo related to the Mozambique LNG project and the merger of DSV Panalpina and Agility. Total last week declared Force Majeure for the Mozambique LNG project following the terrorist attack by IS in Palma. For now, though, it is uncertain what effect these developments will have on the charter rates, Prehm concludes.