The Drewry Multipurpose Time Charter Index weakened over May to $11,120 per day in line with both container spot rates and the Baltic Handy Index. This softening is mainly due to the continued uncertainties in the global situation. Going forward we expect the weakening trend to continue in June, with rates dropping very slightly, at just -0.6%, to $11,050 per day.
Drewry’s latest assessment
“The extended UK Jubilee celebrations and start of Posidonia inevitably produced a slight down turn in demand in the European short-sea market at the start of June, whilst longer haul there has been some continued weakness in Asia due to Covid lockdowns.
Over the next month we expect those lockdowns to be lifted, however there is little to suggest there has been a build-up of demand. China’s PMI did rise over May, but it remains below 50 and this is the third consecutive month to report contraction. That said both fuel prices and congestion levels remain high, so any weakness will be mitigated.
Over the next month our view is that ongoing weakness in both the container and bulk spot markets will keep rates soft, but we do not expect any great movement in this level as we start to move into Summer 2022.”