Toepfer Transport: European shortsea market reaction to political issues unclear

Toepfer Transport: European shortsea market reaction to political issues unclear

Photo source: Samskip

European shortsea market has remained at an elevated level, however, there is uncertainty over the market’s reaction to the current geopolitical tensions, especially in the Black Sea. Ship broker Toepfer Transport noted that the average rates remained relatively flat in the first month of the year. 

In its latest report, Toepfer notes that the day rates in the European shortsea market have remained high. In January 2022, the average rate for 3,200-3,800 dwt vessels stood at €6,940, while 4,800-5,600 dwt vessels were chartered for an average day rate of €9,244.

Toepfer Transport: European shortsea markets' reaction to political issues unclear
Photo source: Toepfer Transport

January 2022 rates for the 3,200-3,800 dwt vessels edged 1.3 percent down from the last month of 2021, while the rates for 4,800-5,600 dwt vessels remained flat. Compared to January 2021, day rates for 3,200-3,800 dwt vessels were up 105.7 percent while day rates for 4,800-5,600 dwt vessels operating in the European shortsea market have increased 108.3 percent.

“The January income of the European shortsea fleet remains at high levels. It is yet unclear how the market reacts on the current political challenges, especially in the Black Sea. Keeping in mind that Russia and the Ukraine represent about 30 pct of the global wheat trade, significant effects on the supply/demand balance can be expected latest during harvest season,” Toepfer Transport’s report reads.

Author: Adnan Bajic

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