Drewry: Multipurpose Time Charter Index Continued its Decline During October
The Drewry Multipurpose Time Charter Index tracks one-year period charter rates across a basket of vessel types and sizes and forecasts the market movement over the coming month. The vessel types include breakbulk and project cargo ships.
The Drewry Multipurpose Time Charter Index continued the decline over October, however, the pace of that decline has slowed. Demand levels in both the short-sea and project carrier sectors have been steady, while rates in the bulk sector have been, at best, flat container rates continued to fall. This mix has resulted in rates for Drewry’s basket of trades falling by just 0.5% over the month to an average $10,025 per day. We do expect the trend to continue into November, with container rates adding further pressure to bring the index below $10,000 per day in November.
Drewry’s latest assessment
October witnessed a steadying of the spot market in the short-sea sector, underpinned somewhat by increases in bunker prices and the need for cargo to be cleared before the year end. Meanwhile the project cargo sector is still benefiting from forward contracts for both wind power and oil & gas, the latter on the back of those strong oil prices. Any decline in rates at the moment is largely driven by increased capacity and pressure from the container sector. We expect that to continue into November, with our forecast for the Index to drop a further 1%, to reach around $9,900 per day. This is some 12% down from the peak of the market and 7% down from November 2021 but remains 63% ahead of November 2020.