After three months of rising earning, the European shortsea fleet has now had two months of decline on the trot, according to the latest monthly report by Toepfer Transport. High cargo volumes have not returned, putting pressure on the rates. 

According to the Hamburg-based shipbroker, time charter equivalents for 3,200-3,800 dwt vessels (TSI-35) stood at €5,640, while 4,800-5,600 dwt vessels (TSI-52) time charter equivalents reached a figure of €6,602, during the last month of 2022. For the first month of 2023, time charter equivalents for 3,200-3,800 dwt vessels were at €5,275, while 4,800-5,600 dwt vessels time charter equivalents stopped at €6,270.

Commenting on the movement, Toepfer Transport analyst said, “The start of the new year dampened the activity and the former high cargo volumes have not returned thus far. This leads to pressure on the rates and overall less earnings.”

Shortsea TCEs on the decline

TCEs for the 3,200-3,800 dwt vessels slipped 3.9 percent percent from November 2022 to December 2022. TCE equivalent for 4,800-5,600 dwt vessels dipped 4.5 percent over the same period. From December 2022 to January 2023, TSI-35 slipped 6.5 percent while TSI-52 dropped 5 percent.

Looking further back, January 2023 TCEs for the 3,200-3,800 dwt vessels were 24 percent below January 2022 figures. TCEs for the 4,800-5,600 dwt vessels operating in the European shortsea market were down 32.2 percent below the figures reported in January 2022.