![No 'summer doldrums' in effect in the multipurpose sector](https://www.projectcargojournal.com/wp-content/uploads/2024/07/No-summer-doldrums-in-effect-in-the-multipurpose-sector-480x360.jpg)
No ‘summer doldrums’ in effect in the multipurpose sector
With July winding down, the summer doldrums in the multipurpose vessel sector seem to be less effective than expected. In its latest report, the Hamburg-based shipbroker, Toepfer Transport notes that its multipurpose Index (TMI) is slowly continuing its upwards trajectory, together with the market sentiment for the second half of the year.
Topefer Transport’s analysts say the Index is steadily heading towards the $13,000 mark, landing at $12,859/day. This was a 1.74 per cent increase compared to the previous month.
The ‘overspill’ of cargo from the container market intensified and especially for the larger multipurpose vessels with high TEU intake. These vessels are being taken away from their breakbulk duties by being chartered to container operators. Many breakbulk/project carriers have reported a strong increase of booking of containerised cargo Toepfer’s analysts said.
![No 'summer doldrums' in effect in the multipurpose sector No 'summer doldrums' in effect in the multipurpose sector](https://www.projectcargojournal.com/wp-content/uploads/2024/07/TMI-Jul-23-Jul-24.jpg)
Looking ahead, the analysts expect the Index to climb a further 2.39 per cent in the next six months, and 5.5 per cent in the next 12 months. The projection indicates that the market stakeholders expect rates to move further upwards in a slow and steady way.
Positive signs in the multipurpose newbuilding sector
There is another change on the market with Toepfer Transport having more and more newbuilds to report on. Demand for newbuilds is high in most maritime sectors, while available capacity, especially for deliveries before the third quarter of 2027 remains low.
However, Toepfer Transport’s analysts point out that the average age of the fleet and the pressure to renew the fleet are still very high. “The fact that a modern 12,000-13,000 dwt vessel offers around 20-25 per cent more cargo capacity (in square and cubic metres) than the average may provide some relief, but given the current geopolitical challenges and the expected increase in demand, there is still some potential for newbuildings in the market,” the analysts say.
The shipbroker highlighted that the recent orders of dship carriers at Jinling Shipyard, as well as the order
of up to four lengthened F500, named F500XL, are now effective. AAL Shipping have also ordered two
additional Super-B Type ships (32.500 dwt) with an increased gear capacity of 3 x 400 mt instead of 3x 350 mt.
There is also a slow and moderate increase in multipurpose newbuilding prices. Prices for 9,000 dwt,12,500 dwt and 30,000 dwt vessels have gone up from $21.75 million, $31 million and $52 million, respectively, in June 2024, to $22 million, $31.5 million and $52.25 million, respectively, in July 2024.
More old workhorses heading for the beaches
The second-hand market activity is high with owners who have started their newbuilding program selling their older vessels. Toepfer Transport reports second-hand prices remain at firm levels with a slight upwards movement.
The second-hand tonnage prices were at $10.75 million, $15.50 million and $18.75 million, for the 9,000 dwt,12,500 dwt and 30,000 dwt vessels, respectively.
What might have come as a surprise is the high activity at the scrap yards with six multipurpose vessels having been sent to the beaches for recycling. The vessels that have reached the end of their service life are, Kapitan Ermakov, Skymoon King, MSC Grace F, New Courage, Idm Doodle and Elmes all built between 1986 and 1997.
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