No effective MPP newbuild orders in Q1, Toepfer Transport says

No effective MPP newbuild orders in Q1, Toepfer Transport says

Photo: SAL Heavy Lift

The multipurpose time charter market declined with a much slower pace compared to the last six months of 2022, Toepfer Transport notes in its latest quarterly report. Reflected in its TMI assessments, and the index value of $14,595 in April, rates have lost 58 per cent since the TMI hit its peak of $23,099 in July 2022. 

However, Toepfer Transport noted that the TMI still hovers well above the 5-year average of $11.395 and the 10-year average of $9.434. This is the reason that shipowners and operators remain cautiously optimistic as earnings are still in good shape in general, at least for long-term business.

In April, spot demand has slowed down particularly in traditional trades from Europe and the Mediterranean which causes some concern.

Cautious optimism

Over the first quarter of 2023, owners have become increasingly optimistic that rates would recover and climb again, as time charter rate levels seemed to have reached a floor.

“In March, on average, it was the first time that both projections for rate levels achievable in both 6 and 12 months’ time, reflected the anticipation of our panel that levels would be higher than the current value. In April, sentiments calmed down again amid more challenging market conditions in the light of lower cargo volumes and lack in demand for spot and prompt positions,” the report reads.

No new orders for MPP vessels

The activity in the charter market remains relatively low. The relatively young operator KOGA is actively building up a tc fleet to broaden their activities and now operates four R-Type ships carrying the company’s brand in their names.

Both the China Newbuilding Price Index as well as the newbuilding steel process continue their upwards trend. With a huge wave of Bulk carrier and tanker orders floating the market, the newbuilding prices are on the rise again. Especially for the larger units the prices are strongly increasing.

However, Toepfer Transport noted that no effective MPP newbuilding order has been placed in the first quarter of 2023 but we monitor high activity with regards to price tendering at various shipyards. Many owners are actively looking for newbuilding slots at competitive prices.

MV Brouwersgracht was delivered from Mawei Shipyard to Spliethoff. The vessel is equipped to handle large and heavy transition pieces and is already booked for a multi-year employment in the offshore wind business.

Contrary to the newbuildings the first quarter activity in the second hand market was higher than in the months before it the quantity of transactions is still low due to a lack of willing sellers.

There is still some demand for vessels with good specifications and gear between 200 and 500 mt combined with potential buyers willing to pay premium prices for the right ships.

Author: Adnan Bajic

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No effective MPP newbuild orders in Q1, Toepfer Transport says | Project Cargo Journal
No effective MPP newbuild orders in Q1, Toepfer Transport says

No effective MPP newbuild orders in Q1, Toepfer Transport says

Photo: SAL Heavy Lift

The multipurpose time charter market declined with a much slower pace compared to the last six months of 2022, Toepfer Transport notes in its latest quarterly report. Reflected in its TMI assessments, and the index value of $14,595 in April, rates have lost 58 per cent since the TMI hit its peak of $23,099 in July 2022. 

However, Toepfer Transport noted that the TMI still hovers well above the 5-year average of $11.395 and the 10-year average of $9.434. This is the reason that shipowners and operators remain cautiously optimistic as earnings are still in good shape in general, at least for long-term business.

In April, spot demand has slowed down particularly in traditional trades from Europe and the Mediterranean which causes some concern.

Cautious optimism

Over the first quarter of 2023, owners have become increasingly optimistic that rates would recover and climb again, as time charter rate levels seemed to have reached a floor.

“In March, on average, it was the first time that both projections for rate levels achievable in both 6 and 12 months’ time, reflected the anticipation of our panel that levels would be higher than the current value. In April, sentiments calmed down again amid more challenging market conditions in the light of lower cargo volumes and lack in demand for spot and prompt positions,” the report reads.

No new orders for MPP vessels

The activity in the charter market remains relatively low. The relatively young operator KOGA is actively building up a tc fleet to broaden their activities and now operates four R-Type ships carrying the company’s brand in their names.

Both the China Newbuilding Price Index as well as the newbuilding steel process continue their upwards trend. With a huge wave of Bulk carrier and tanker orders floating the market, the newbuilding prices are on the rise again. Especially for the larger units the prices are strongly increasing.

However, Toepfer Transport noted that no effective MPP newbuilding order has been placed in the first quarter of 2023 but we monitor high activity with regards to price tendering at various shipyards. Many owners are actively looking for newbuilding slots at competitive prices.

MV Brouwersgracht was delivered from Mawei Shipyard to Spliethoff. The vessel is equipped to handle large and heavy transition pieces and is already booked for a multi-year employment in the offshore wind business.

Contrary to the newbuildings the first quarter activity in the second hand market was higher than in the months before it the quantity of transactions is still low due to a lack of willing sellers.

There is still some demand for vessels with good specifications and gear between 200 and 500 mt combined with potential buyers willing to pay premium prices for the right ships.

Author: Adnan Bajic

Add your comment

characters remaining.

Log in through one of the following social media partners to comment.