ALTHOUGH multipurpose vessel (MPV) rates are expected to decline through 2023, the rate of decline is expected to be less than in competing sectors such as containerships and dry bulk carriers, reports London's Drewry Maritime Research.
Last year started with charter rates in all three main dry cargo sectors at high levels, peaking in Q1 2022.
At that point, containership rates were 900 per cent higher than in Q2 2020, while bulk carrier charter rates were 200 per cent higher, and MPV rates were up 150 per cent.
From the peak at the beginning of the year, charter rates in the container shipping sector lost 80 per cent of their value to end November 2022, and handy bulk carriers 50 per cent.
Meanwhile, the MPV sector is doing better, with long-term charter rates down 10 per cent from their peak.
The reasons are due to the demand for these vessels and the particular mix of cargoes that they can lift. The MPV sector benefitted from spillover cargo that was a by-product of widespread supply chain disruption.
As those issues have unwound, project cargoes have underpinned the loss in demand. For the first time in some years, the total MPV fleet recorded growth last year and is likely to do so again in 2023.
It is due to the extremely low demolition sales reported over 2022.
Drewry expects demolition rates to rise through 2023 back to pre-Covid crisis levels, on weaker earnings and increasing costs of looming Chinese 24,000 TEUers.
SeaNews Turkey
Last year started with charter rates in all three main dry cargo sectors at high levels, peaking in Q1 2022.
At that point, containership rates were 900 per cent higher than in Q2 2020, while bulk carrier charter rates were 200 per cent higher, and MPV rates were up 150 per cent.
From the peak at the beginning of the year, charter rates in the container shipping sector lost 80 per cent of their value to end November 2022, and handy bulk carriers 50 per cent.
Meanwhile, the MPV sector is doing better, with long-term charter rates down 10 per cent from their peak.
The reasons are due to the demand for these vessels and the particular mix of cargoes that they can lift. The MPV sector benefitted from spillover cargo that was a by-product of widespread supply chain disruption.
As those issues have unwound, project cargoes have underpinned the loss in demand. For the first time in some years, the total MPV fleet recorded growth last year and is likely to do so again in 2023.
It is due to the extremely low demolition sales reported over 2022.
Drewry expects demolition rates to rise through 2023 back to pre-Covid crisis levels, on weaker earnings and increasing costs of looming Chinese 24,000 TEUers.
SeaNews Turkey
