Red Sea circumnavigation bumps MPP Index up in March
Similar to its counterpart from Drewry, Toepfer Transport’s MPP Index, has been propped up by traditional market movements and the effects of the Houthi militia attacks in the Red Sea. It all resulted in the TMI moving up for the second month in a row.
According to the Hamburg-based shipbroker Toepfer Transport, its MPP Index for March 2024 has gone up after breaking the decline for the first time since June 2023 in the previous month. The March MPP Index is at $12,027 per day, rising 2.9 per cent month-on-month. The March 2024 figure is still some 19.3 per cent below the $14,907 per day reported in March 2023.
Looking forward, Toepfer Transport expects the MPP Index to climb 4.06 per cent over the following six months. Twelve months down the road, the MPP Index is expected to be some 6.97 per cent higher.
“Positive demand indicators and booking activity combined with higher utilisation of the fleet, both caused by traditional market movements and the additional ton-miles arising from circumnavigating the Red Sea risk area, cause the TMI to move slightly upwards again,” Toepfer Transport’s analysts say in the latest monthly report. “We monitor that some charterers are willing to pay rates above the TMI level to strategically secure cargo space to cater for their clients’ future demand and to strengthen their services.”
Similar to February 2024, there was only one change in the newbuilding prices for 9,000 dwt,12,500 dwt and 30,000 dwt MPP vessels, according to Toepfer Transport, with the 9,000 dwt price increasing from $21 to $21.5 million, while the 12,500 dwt and 30,000 dwt MPP vessel newbuilding prices remained at $30.75 and $51 million.
Prices on the second-hand market remained unchanged at $10.50, $14.75 and $18.50 million for the 9,000 dwt, 12,500 dwt and 30,000 dwt vessels, respectively.
