MPP Index rate up with fleet utilisation

Toepfer Transport’s MPP Index is continuing its rise as a circumnavigation of the risk area in the Red Sea is positively impacting fleet utilisation.

According to the Hamburg-based shipbroker Toepfer Transport, its MPP Index has climbed for the fourth month in a row, landing at $12,483 per day in May 2024. This represents a rise of 1.83 per cent month-on-month. The May 2024 figure was 13 per cent below the Index figure in May 2023.

Looking forward, Toepfer Transport expects the MPP Index to climb 3.09 per cent over the following six months. and 5.85 per cent over the next twelve months.

“The additional tonnage miles created by ships circumnavigating the Red Sea risk area still have a positive impact on fleet utilization. The unexpected recovery of the rates for containers weakens the competition from Container Operators chasing breakbulk cargo,” Toepfer’s analysts say.

On the asset side, the second-hand market has shown low activity the shipbroker said. Toepfer Transport said that the prices for 9,000 dwt,12,500 dwt and 30,000 dwt vessels in the market remained at the same level as the month before, landing at $10.25 million and $14.50 million and $18.50 million.

“There is ongoing low activity in the second-hand market. The newbuilding prices remain at firm levels,” the analysts said. This means that newbuild prices for 9,000 dwt,12,500 dwt and 30,000 dwt vessels have stayed at $21.5 million, $30.75 million and $51 million, respectively.