Jun 04 | 2020
(Global) Toepfer Index Drops Further
Multipurpose time charter rates have declined again this month, slipping to less than U$6,400 in June, according to the latest research by shipping consultancy Toepfer Transport.
The average six- to 12-month time charter rate fell to just US$6,381 per day for June compared to US$7.529 in the same period last year, according to Toepfer’s Multipurpose Shipping Report index.
10-year Low
Since the beginning of the global Covid-19 outbreak MPV rates have fallen steadily and despite an already low bar have now slipped beneath both the five- and 10-year average.
As of April, Toepfer calculated that the five-year time charter average stood at U$6,966, while the 10-year time charter average equalled US$7,943.
Topefer estimates that MPV rates reached a nadir in early 2017, close to the US$6,000 mark, however the latest declines suggest that charter rates may soon equal or go beyond this level.
Sale and Purchase
The firm also notes that lockdown measures are affecting sales and purchases of vessels, impacting the dynamics of the market.
“Many authorities work slower, it is difficult to get documents apostilled and notarized, there are many restrictions and bans for inspections and crew changes as well as physical meetings. Banks and other investors are very careful to provide funding in the current uncertain and falling market and the lockdown has slowed down decision making,” the firm notesdd.
Topefer’s index is based on a 12,500 deadweight-tonne multipurpose /heavy-lift F-Type vessel for a six to 12-month charter period.
“With workers only returning slowly back to work from the Covid-19 lockdown, the Chinese yards still not reach the pre-Covid production speed and productivity levels ... We hear from our clients that many yards have meanwhile declared force majeure for various ongoing projects,” Toepfer stated.
Headquartered in Hamburg, Germany, Toepfer Transport is one of the largest S&P brokers in the city and alongside core S&P brokerage services provides newbuilding consultancy and market research.
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