Summer hits the shortsea fleet earnings hard
European shortsea operators are seeing more open tonnage and less available cargo as the summer season comes in quick. The lull is reflected in the Toepfer Transport’s shortsea index which has taken the largest hit in the last four months.
The Hamburg-based shipbroker noted that Toepfer’s Shortsea Index (TSI) fell in both of the vessel brackets taken into consideration. The time charter equivalents for 3,200-3,800 dwt vessels (TSI-35) stood at €4,682, while 4,800-5,600 dwt vessels (TSI-52) time charter equivalents reached a figure of €5,657, during May 2023. This was a 6.5 per cent and 5.3 per cent drop, respectively, compared to the previous month.
To remind, during the month of April, TSi-35 stood at €4,997, while TSI-52 was at €5,976.
Comparing to the corresponding month in 2022, TSi-35 fell 24.1 per cent from €6,171, and TSi-52 slipped 25.2 per cent from €7,566.
Commenting on the movement, Toepfer Transport analyst said, “The TSI has taken the largest hit since four months with the TSI-35 down 6,3% and the TSI-52 down 5,3%. It feels like the summer break has already settled in with more open tonnage and less available cargo. The spot market is rather weak and the operators are having a harder time finding good paying contracts.”