Time charter rates in the multipurpose shipping sector have dropped even further over the last month, according to Toepfer’s Multipurpose Index for April.
As can be seen in the April TMI April report, average daily time charter rates for a 12,500 dwt/F-type heavy lift vessel stands at USD6,863 for April 2020, a drop of USD358 or 5% compared to March 2020’s rate of USD7,221.
Charter rates are falling as a result of the coronavirus which has led to decreased transport demand and many operational difficulties such as quarantine restrictions and prohibited crew changes. Analysts expect the outbreak to have a long-lasting impact, with a rebound in rates reliant on containment. The longer and more widespread the outbreak, the more damage it will cause across the industry.
As we reported last week, Drewry expects multipurpose/heavy lift cargo demand growth to stagnate in the next two years, growing at an average annual rate of just 0.3 percent.