Toepfer's Shortsea Index continues steep climb in November

Toepfer’s Shortsea Index continues steep climb in November

The charter rates for general cargo vessels in the European shortsea market have continued a steep climb, according to the latest information from the German shipbroker Toepfer Transport. Toepfer has reported a sharp increase of its Shortsea Index for the month of November 2021. 

In the report, Toepfer notes that the day rates in the European shortsea market have been rising steadily over the year with significant increases in the last couple of months. In November 2021, the average rate for 3,200-3,800 dwt vessels stood at €6,077, while 4,800-5,600 dwt vessels were chartered for an average day rate of €8,336.

November rates jumped 16.73 percent for the 3,200-3,800 dwt vessels, while the rates for 4,800-5,600 dwt vessels jumped 16.39 percent, compared to the month of October 2021. This comes after the day rates for 3,200-3,800 dwt vessels jumped 20 percent, and the rates for 4,800-5,600 dwt vessels jumped 27.3 percent from September to October 2021. Compared to November 2020, day rates for 3,200-3,800 dwt and 4,800-5,600 dwt vessels operating in the European shortsea market have increased 92 percent and 96.7 percent, respectively.

Toepfer's Shortsea Index, November 2021
Photo source: Toepfer Transport

Since the start of the year the average day rates for general cargo vessels in the European shortsea market in the 3,500 – 3,700 dwt and 5,000 – 5,500 dwt range have jumped 80.1 percent and 87.8 percent, respectively.

The European winter does not cool down the Shortsea Shipping sector which remains very hot, Toepfer’s analysts say. High freight rates in the Baltic and even higher freight rates in the Eastmed drive the upwards trend. Congestion becomes an issue in various places and the upcoming traditional holiday-related close down of UK ports creates a temporary shortage of tonnage supply.

“Operators with project cargo capabilities consider to more concentrate on bulk cargoes since fertilizers and similar commodities turn out to provide better results than high value industrial goods these days,” Toepfer Transport’s report reads.

Author: Adnan Bajic

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