Toepfer Transport: MPP market dominated by wait-and-see attitude
Toepfer Transport’s Multipurpose Index edged up during the month of June after dipping in May for the first time in 22 months. The increase was mainly due to the fact that the negative economic trends reach the MPP market with a slight delay.
The Hamburg-based shipbroker reported a TMI value of $23,099 for the month of June 2022, which compares with $22,577 the previous month, representing a 1.47 percent increase. This is also a jump of 105.78 percent compared to June 2021. Looking ahead six months, Toepfer expects the Index to edge downwards 4.87 percent while it is expected to slip further 10.47 percent over the 12-month period.
“The MPP sector is currently driven by a wait-and-see attitude. The economy is on the brink of a recession and while the sentiment across OECD member countries has fallen for 11 straight months and hasn’t been this low since 2009, the MPP market rates continue to stay at historically high levels,” Toepfer Transport’s report reads.
Due to the long lead times for large projects, negative economic trends usually reach the MPP market with a certain delay and some indicators give hope that the ongoing surge in demand, especially from the renewables sector, may mitigate some of the upcoming macroeconomic pressure.
Facing the uncertainty of when, how long and how hard the recession will hit the market, both the MPP second hand and the newbuilding markets show very low activity. Some owners are still actively promoting their newbuilding ideas but most still have some way to go to turn their plans into effective orders