The Toepfer’s Multipurpose Index (TMI) retraced its 10-month losing streak to end at USD 14,421 as against its recent low of USD 14,360 recorded with the last quote. The 61 points or 0.42% increase indicated an early stability buoyed by demand in the project cargo sector, which will act as a support for prices for the next 6-12 months despite the engulfing competition effect from Container, Bulk and Ro-Ro carriers. It could be an interesting connotation or coincidence that the recent lows of USD 14,360 where just a touch higher than the mathematical support-induced Fibonacci retracement levels. However, whether this could be the bottom remain to be seen as Drewry’s on the other hand expects marginal declines to seep up in the near-term.
The Drewry’s Multipurpose Time Charter Index dragged in line with the consultant’s forecast of USD 8,989 nearly hitting the bull’s eye to settle at USD 8,984 for the month, just 4% above the levels of June-2021. Drewry’s also reported forecast for the next month to be around USD 8,912. While there have been a very marginal increase in breakbulk newbuilds, mostly case-specific, with emerging opportunities in terms of green Heavylift corridors, greener energy and offshore projects and the need from ship-owners and ship-operators owing to the IMO regulations on Greener shipping ideally/ effectively “seeing some numbers” from the start of next year there could be a growing call and requirements for upgrading and additions to the global Heavylift fleet. Although, the effect of less newbuilds playing a significant contributor in the sector, for the short term is minimal
Acknowledgments go to our guest writer, Mr. Gautham Krishnan, for his valuable contribution to the article.
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
