September activity brings some promise as shortsea TCEs slip in August
Although September lived up to the expectations, it seems that it is still not enough to warrant the full return of optimism in the shortsea sector. There was, however, an environment of satisfaction and marginally rising freight rates and increased activity.
In its latest monthly review of the shortsea sector, the Hamburg-based shipbroker, Toepfer Transport, said that Toepfer’s Shortsea Index (TSI) had a smaller drop than in recent months in both of the vessel brackets taken into consideration, during the month of August.
The time charter equivalents for 3,200-3,800 dwt vessels (TSI-35) stood at €3,599, while 4,800-5,600 dwt vessels (TSI-52) time charter equivalents reached a figure of €4,838, during August 2023. This was a 1.99 per cent and 2.16 per cent drop, respectively, compared to the previous month.
However, speaking of September activity, Toepfer Transport analyst said, “As anticipated, September proved to shape a market environment that was a bit more satisfying with marginally rising freight levels and increased activity. Although a turnaround from the rate declines of summer has been brought about, a significant improvement in voyage results could not be reached so far.”
“The upswing does not yet provide the necessary ingredients for the fundamental recovery that is needed to give rise to much more happiness and optimism in the short sea sector. Shippers and charterers are reluctant to increase freight and charter levels beyond last done, and obviously there are sufficient options to cover their shipments with a lot of candidates available in the spot market,” according to the latest monthly report provided to Project Cargo Journal.