The Toepfer’s Short Sea Indices (TSI-35 and TSI-52) extended their fall into June 2023, thanks to the traditional summer downturn The TSI-35 which covers for gearless vessel in the 3,200-3,800 dwt category, unveiled by Toepfer’s along with its counterpart in October-2020, shelved about 9.48% for the month of June-2023, its fourth worst monthly performance to end at USD4,238.
The TSI-52 which reflects the price movements for Gearless vessels or mini bulkers in the 4,800-5,600 dwt category segment, also deployed in Europe shortsea trade saw a 7.14% shave-off for the month as prices settled at USD5,253 for May 2023. Both the indices now stand at the levels witnessed between August and September 2021, indicating the rates are at a 23-month low.
Comments from Toepfer Transport indicated that there has been a lack of activity in the space, as well as a lack of sheen in cargo demand. The market is split in terms of an optimistic outlook post September with the effects of the fall and the winter, with another section seeing the inactivity to continue past the summer. The duo has corrected anywhere between 40-43% since their peaks witnessed in Q1, 2022.
This coincides with the correction apparent/ visible in the larger, ocean-going segment reflected by TMI. While we have begun to see some newbuilding action in the short-sea segment, it could still be a stretch unto the long term to have the supply effect play a major role in rate movements.
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.
