It is that part of the cycle, where the Project Cargo is keen on. The upcoming summer- more daytime and construction hours to subvert the lean patch in the sector, it seems that the showstoppers are the minor bulk and loose items. That’s what the latest prices indicate.
The Toepfer’s Multipurpose Index (TMI) extended its ‘break’ for the eighth straight month, that saw the index falling to US$14,907 per day, breaching the psychological mark of US$15,000. The index has lost 35% since it recorded a high of US$23,099.
The Drewrys’ Multipurpose Time Charter Index, which had a stable phase between November and February, broke out of the range to end at US$9,430 per day, much below Drewrys’ own estimate of US$9,795.
The Breakbulk fraternity is still bullish on the demand for Breakbulk cargo with the current price points supposedly being at par to trigger demand.
However, there still dwells a uncertainty factor regarding loose/minor bulk items, as bulk and container prices have fallen as well, not to mention air freight prices taking a dip too.
It is recommended to review consolidation opportunities for cargo on a case-case basis, including a cost vs timeline comparison for Breakbulk shipments. There is also a divided opinion on whether the rates have bottomed out or not, for the sector, though with the sector yet to catch up with its peers, there could be a bit more on the downside.
Source of pics- Toepfer’s (1st) and Drewry’s (second)
GUEST WRITER: ARTICLE CONTRIBUTION: Mr. GAUTHAM KRISHNAN
