The downward trend in MPV prices continued as the Toepfer’s Multipurpose Index (TMI) registered its sharpest dip in six months, in terms of monthly percentage falls. The average day charter rates for >12,500 deadweight vessels, represented by TMI, broke below the psychological mark of USD 13,000 to end at 12,958, dropping 4.33% for the month of September 2023.
The index has shaved off about 43.9% from the peak level of USD 23,099 in July 2022. The rates also mean that the index is just a tad higher (about 4.2% higher) than the levels last seen in August 2021. In comparison with the 5-year moving average of USD 11,938- the index is priced higher by about 8.54%.
The Drewry’s Multipurpose Time Charter Index too continued its slide for the 17th consecutive month to end at USD 8,583- a tad better than the expected levels of USD 8,521. While Drewry expects the rates to remain at around USD 8,511 for the next quote- the decline has been underlined with the project cargo finding hands from the ‘relatively’ lesser priced container and bulk sectors of ocean freight. In spite of the 17-month fall, the Drewry Multipurpose Time Charter Index has lost a mere 24% owing to the composite weighted nature of the index.
With a weaker market sentiment on the horizon, the decline in the rates could continue- at a less steeper rate. Toepfer’s meanwhile have maintained an optimistic outlook on the run up to August 2024.
Author of the article: Gautham Krishnan
Gautham Krishnan is a logistics professional with Fluor Corporation, in the area of project logistics and analytics, and has worked in the areas of Project Management, Business Development and Government Consulting