Jan 15 | 2020
(Global) Index's Time Charter Rates Dip to US$7,393
Multipurpose time charter rates have stayed lightly stable at the start of the year, with little change forecast for the next few months, according to the latest research by shipping consultancy Toepfer Transport.
The firm’s Multipurpose Shipping Report index suggests a slight decline in the average six- to 12-month time charter rate, falling from to US$7,554 per day in December to US$7.393 in January.
“Our Multipurpose Index, the TMI, stays stable lightly,” a spokesperson for Toepfer said. “We expect that this will continue to be the case for the next few months.
CAGR of 5.87%
The outlook from the firm’s research suggests a three-year compound annual growth rate (CAGR) of 5.87 percent for the TMI, with year-on-year growth sitting at 0.48 percent.
“The current level of the TMI is centered between the 5-year and the 10-year rate average, which indicates that the overall development is positive,” the firm states.
Toepfer data suggests that charter rates have remained flat since the latter half of 2018, closely aligned with a global slowdown tied to trade tariffs and policy uncertainty.
Newbuilding Struggles
Toepfer notes that “ongoing low order activity” continues to ensure that active newbuilding yards are switching to repair and retrofit business, creating a dearth of new vessels in the pipeline.
“The most prominent example is Cosco Guangdong which, despite attracting interest from various MPP players, was not able to meet the target to conclude a newbuilding deal until Christmas. The yard was well-known for its Groot cross-bow Cattle Carriers built for Vroon,” the report’s author’s note.
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.
The firm’s Multipurpose Shipping Report index suggests a slight decline in the average six- to 12-month time charter rate, falling from to US$7,554 per day in December to US$7.393 in January.
“Our Multipurpose Index, the TMI, stays stable lightly,” a spokesperson for Toepfer said. “We expect that this will continue to be the case for the next few months.
CAGR of 5.87%
The outlook from the firm’s research suggests a three-year compound annual growth rate (CAGR) of 5.87 percent for the TMI, with year-on-year growth sitting at 0.48 percent.
“The current level of the TMI is centered between the 5-year and the 10-year rate average, which indicates that the overall development is positive,” the firm states.
Toepfer data suggests that charter rates have remained flat since the latter half of 2018, closely aligned with a global slowdown tied to trade tariffs and policy uncertainty.
Newbuilding Struggles
Toepfer notes that “ongoing low order activity” continues to ensure that active newbuilding yards are switching to repair and retrofit business, creating a dearth of new vessels in the pipeline.
“The most prominent example is Cosco Guangdong which, despite attracting interest from various MPP players, was not able to meet the target to conclude a newbuilding deal until Christmas. The yard was well-known for its Groot cross-bow Cattle Carriers built for Vroon,” the report’s author’s note.
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.
