Capacity constrains in the multipurpose vessel (MPV) capacity have kept the spot market demand high but the forward projection for both container and bulk markets started to weaken. As a result, shipping consultancy Drewry noted its Multipurpose Time Charter Index rose 2.5 percent in the month of October. 

The index has reached $10,294 per day in October, however, the rise was below that of 5.3 percent reported in September. Drewry’s index is up 61 percent since the start of the year and 72 percent since October 2020. Drewry expects the index to rise a further 1.5 percent in November to reach $10,450 per day.

This is in line with the predictions the consultancy made in August when it issued its July figures with the index then rising only 1.4 percent. Despite a significant jump in September, nearly 7 percent, the rise has been slowing down.

Drewry reports short-sea sector rise

The short-sea sector continued to rise strongly over October as demand levels remained high and spot vessels scarce. The end of the year is usually a peak demand period for this sector. While this has been an unprecedented year, and we are yet to return to ‘normal’, we would not expect there to be a significant change to this trend over the next few months. Indeed our expectation is that short-sea rates could keep the Index firm.

In contrast the weakening of the dry bulk rates over the start of November, albeit from exceptional highs, and the unofficial capping of container freight rates, gives rise to the expectation that period rates for the larger, heavylift capable vessels may start to plateau to the end of the year. There has been some activity on the spot market again and this will also add to a softer market outlook.