Charter rates for the multipurpose vessels fleet has continued its downwards path in the month of May, after remaining flat in April due to Covid lockdowns in China. According to the shipping consultancy, Drewry, the rates will continue on this slope in June as well. 

During the month of May, the Drewry Multipurpose Time Charter Index weakened to $11,120 per day in line with both container spot rates and the Baltic Handy Index. This compares to the $11,170 per day reported by the consultancy in April.

This softening is mainly due to the continued uncertainties in the global situation. Going forward Drewry analysts expect the weakening trend to continue in June, with rates dropping very slightly, at just -0.6 percent, to $11,050 per day.

The extended UK Jubilee celebrations and start of Posidonia inevitably produced a slight down turn in demand in the European short-sea market at the start of June, whilst longer haul there has been some continued weakness in Asia due to Covid lockdowns, Drewry’s latest report reads.

Over the next month the consultancy expects those lockdowns to be lifted, however there is little to suggest there has been a build-up of demand. “China’s PMI did rise over May, but it remains below 50 and this is the third consecutive month to report contraction. That said both fuel prices and congestion levels remain high, so any weakness will be mitigated,” Drewry’s analysts say.

Over the next month the view is that ongoing weakness in both the container and bulk spot markets will keep rates soft, but Drewry does not expect any great movement in this level as we start to move into Summer 2022.