Toepfer Transport: MPP market about to hit plateau
Toepfer Transport Multipurpose Index has continued its rise above the $20,000 mark, however, the market plateau may be on the horizon, according to the Hamburg-based broker.
Toepfer Transport noted in its latest briefing that the Index has reached $21,863 for the month of February, growing 4.2 percent from the previous month. This is also a growth of 205.9 percent compared to the figures reported for February 2021.
“The upwards curve is flattening and so does the sentiment towards the market development. It seems that the market is about to reach a plateau and may remain at current high levels for some more months with only minor corrections. Trades from and to Far East are the key drivers while in other trades the demand for cargo space is slightly cooling down,” the broker said in its briefing.
Looking at the six months ahead prediction, Toepfer Transport expects the TMI to rise a further 2 percent. However, for the next 12 months the TMI is expected to drop 6.43 percent.
To remind, Toepfer Transport’s Multipurpose Index (TMI) represents the monthly average time charter rate assessment for a 6-12 time charter for a 12,500 dwt MPP/HL “F-Type” vessel.
Newbuilding prices on the up
The high demand in ship capacity continues to reflect in second-hand prices and the ongoing search for available yard slots, as values and newbuilding prices have risen again compared with last month.
Toepfer Transport notes that SAL Heavy Lift, part of the Jumbo-SAL-Alliance, is working on a newbuilding project of two plus two ultra-heavy lift vessels with about 14/15.000 dwt seemingly with 900 tons single lift.
Additionally, Briese Schiffahrt secured another two F500 ‘light’ ships, making it a total of six vessels of the series, the first one, BBC Ukraine, having been delivered earlier this year.