Toepfer Transport’s Multipurpose Index has shown a slight dip for the month of August, as pressure mounts with first signs of the MPP market slowing down. After edging up throughout June and July, TMI dipped 0.78 percent in August. 

The Hamburg-based shipbroker reported a TMI value of $22.954 for the month of August 2022, which compares with $23.099 in the previous month. This is also a jump of 84.59 percent compared to August 2021. Looking ahead six months, Toepfer expects the Index to edge downwards 6.61 percent while it is expected to slip further 13.50 percent over the 12-month period.

The analyst and shipbroker earlier noted in its quarterly MPP report that the rates are still holding firmly high even though macroeconomic and geopolitical issues are concerning the industry. With the economy being on the brink of a recession the market stakeholders established a wait-and-see attitude and the market activity as well as the duration of charter contracts is declining.

Commenting on the August TMI figures, Toepfer Transport analysts say, “This month’s TMI once again shows a sideways movement. The market participants are still fixing for high levels though pressure begins to rise. The first indicator of the market slowing down are the Time Charter length and we see a definitive drop there.”

Most operators are hesitant to commit to these still high rates for a longer period. This is a result of high macroeconomic uncertainty which is bound to grow with China now concluding military training at the border of Taiwan.

Still, the sideways trend and Toepfer Transport’s TMI-P index shows, that market participants are still in an overall good mood. The large investments from countries around the world in renewable energy as well as oil and gas should provide the MPP sector with large cargo volumes for the years to come.