Drewry forecasts rates rise to continue in July

Drewry forecasts rates rise to continue in July

Photo source: AAL Shipping

The UK-based shipping consultancy Drewry noted continued rise in rates across all sectors lifting its Multipurpose Time Charter Index by 7.1 percent in June. 

The consultancy noted the Index increased to $8,934 per day in June. The rise of 7.1 percent compares to the 4.3 percent rise seen in the previous month.

Drewry’s Index is up 37 percent since the start of the year and 58 percent since June 2020. Drewry expects the index to rise a further 5.2 percent in July to reach $9,400 per day.

Phot source: Drewry

Drewry: strong demand to continue through to Q3

Rates across all sectors, including the smaller shortsea vessels, continued to rise over June as strong demand outstripped limited supply.

The pent-up demand for manufactured goods and their raw materials, coupled with continued capacity constraints in both the container and bulk carrier sectors, has produced an ever expanding call for MPV tonnage.

This continued demand uplift is expected to last through the third quarter of 2021, although Drewry thinks it likely that the rate of growth will slow.

For the short-term forecast Drewry does not expect any sudden change in market direction, particularly as most carriers continue to advise that they are fully booked for two months hence. However there is a difference between the two sectors of the fleet. The smaller shortsea market remains firm but rate growth has slowed to below 2 percent month-on-month, whereas the larger more heavy-lift capable tonnage is reporting rates some 10 percent above last done.

Author: Adnan Bajic

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