Toepfer Transport’s MPP Index dips for the first time in 22 months
While the time charter rates for multipurpose vessels remain elevated, it is the first time in 22 months that Toepfer Transport’s Multipurpose Index has dipped. Although it was a drop of 0.82 percent it reflects the uncertainties connected with the war in Ukraine and Chinese lockdowns.
The Hamburg-based shipbroker reported a TMI value of $22,577 for the month of May 2022, which compares with $22,764 the previous month. This is also a jump of 151.3 percent compared to May 2021. Looking ahead six months, Toepfer expects the Index to edge downwards 4.11 percent while it is expected to slip further 12.45 percent over the 12-month period.
“The market dynamic has lost some steam in the light of latest uncertainties connected with Ukraine war and Chinese lockdowns, also prompting market participants to be more cautious in their forward projections. However, sentiments in general are positive and it is expected that demand in Asia will rebound as soon as Chinese lockdowns will be lifted, providing new impetus,” Toepfer’s report reads.
Newbuilding price developments leave room for further increases as material prices are still climbing, but we are keeping assessments for MPP newbuilding prices unchanged on high ground, but have to make another upward adjustment to second-hand prices as latest transactions have again overtaken purchase prices achieved last months amid strong demand. It is still a challenge for potential buyers to get their hands on suitable MPP tonnage.