MPP Index bumped by issues in major canals
Drewry's Opinion

Multipurpose Index bumped by issues in major canals

Photo BBC Chartering

The Drewry Multipurpose Time Charter Index was significantly “helped” by the issues with both the Suez Canal and the Panama Canal. The Index hit a value of $9,048 per day in April, beating Drewry’s forecast. 

Back in March, when the Index level stood below the forecast at $8,845 per day, Drewry set its April expectation at $8.850. However, the Index shot up above $9,000, signalling better-than-expected performance for larger multipurpose vessels (MPP), leading to a larger increase.

MPP Index bumped by issues in major canals
Source: Drewry

Compared to the previous month, the Index value rose 2.3 per cent in April and is expected to edge up by a further 0.1 per cent in May. Compared to April 2023 when the Index was at $9,069 per day, the current figures are level.

Looking ahead, the consultancy believes the index will remain around this new level, with even a small possibility of a decrease. The current increase is believed to be due to additional tonne miles required as a result of the issues with both major canals.

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Author: Adnan Bajic

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