Drewry predicts the multi-purpose vessel (MPV) charter market will remain under pressure for Q1 2023, with its Multipurpose Time Charter Index declining by 2.7 per cent in March, reaching USD 9175 per day. This represents a drop of around 17.8 per cent since March 2022, but is still 17.7 per cent above March 2021.
The Drewry Multipurpose Time Charter Index was below the forecasted value of USD 9795 per day in February, at USD 9430 per day. This is a 4.3 per cent reduction from January, which Drewry says is greater than expected.
Short sea rates, which were slowing the speed at which the index fell, have seen a lack of cargoes and their rates took a dip. This resulted in a larger reduction in the index. However, this was still not as bad as in other segments, according to Drewry.
The independent market research company believes various project cargoes, which are suited to the MPV market, are still supporting the rates. However, this is a fleet of many vessel types and sizes, meaning not all can take advantage of the project cargo market and may see a steeper decline.
Drewry Multipurpose Time Charter Index
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.
Picture source: Drewry Multipurpose Forecaster.