The Toepfer’s Short Sea Indices (TSI-35 and TSI-52) were both handed out a monthly rate dip of 5%. 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 6.30% for the month of May-2023, its fourth worst monthly performance to end at USD4,682. 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 5.34% shave-off for the month as prices settled at USD4,682 for May 2023. Both the indices now stand at the levels witnessed between September 2021 and October 2021, indicating the rates are at a 20-month low.
Comments from Toepfer Transport indicated that there has been a lack of breakthrough in finding good paying contracts by the vessel operators. There has been more open tonnage and less available cargo the market as the peak summer effects have withered. The TSI-52 has corrected nearly 39% from the highs it witnessed in January 2022 at USD9,244, which coincided with the high periods of congestion across ports. The TSI-35 had hit its highest mark at USD7,110 in February 2022, and has lost about 34.85% since then, which includes an incumbent six month losing streak. While contracts are being re-written, ports having very little congestion, it would take a significant amount of organic demand to cushion the fall in prices despite the categories having a lower-base volume. The bigger cousin in Toepfer’s Multipurpose Index had just about snapped its 10-month losing streak in June 2023.
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.
