Toepfer Transport: MPP charter rates remain solid
Time charter rates for multipurpose (MPP) vessels are holding steady, and even showing a slight uptick. Toepfer Transport’s Multipurpose Index edged up 0.81 percent from May to June.
The Hamburg-based shipbroker reported a TMI value of $22,760 for the month of June 2022, which compares with $22,577 the previous month. This is also a jump of 121.29 percent compared to June 2021. Looking ahead six months, Toepfer expects the Index to edge downwards 3.71 percent while it is expected to slip further 10.98 percent over the 12-month period.
Although rising bunker prices are putting pressure on vessels operational cost, the MPP period time charter rates remain solid on high level with a minor plus compared with last month amid unbroken demand for tonnage and improved market confidence, the shipbroker said in its report.
Activity on the newbuilding market has slowed down. Reasons for this may be the continuing war in the Ukraine and very high energy prices. Another reason is the weak performance of the Euro which makes USD investments of European shipowners less attractive.
Due to high material cost, newbuilding prices are continuing to rise and profit margins for the yards remain slim. Toepfer Transport are not expecting newbuilding prices to weaken in the intermediate future.
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