In a somewhat similar fashion to the MPP sector, the shortsea shipowners are looking forward to a better negotiating position going forward. Toepfer Transport’s Shortsea Index (TSI) did see another drop in July, however, early signs in September seem to be quite positive. 

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 €3,672, while 4,800-5,600 dwt vessels (TSI-52) time charter equivalents reached a figure of €4,945, during July 2023. This was a 13.4 per cent and 5.9 per cent drop, respectively, compared to the previous month.

During June, TSI-35 stood at €4,238, while TSI-52 was at €5,253. Compared to the corresponding month in 2022, TSI-35 fell 35.1 per cent from €5,661, and TSI-52 slipped 27.7 per cent from €6,839.

“The steep fall of cargo volumes and lower freight levels that owners experienced during summer holidays in July and August have given way to a more positive scenario in early September. What owners were hoping for in the last weeks when time charter equivalents fell significantly, seems to come true: the direly-needed seasonal upswing, that slowly appears to kick in,” the research team at Toepfer Transport said.

“Returning to their desks after summer holidays, many shippers and traders particularly in Scandinavia have already started to approach owners with their enquiries and the increased demand for vessels is putting owners in a much better position to negotiate higher freights.”