The multipurpose carrier (MPP) Market Sentiment Index (MSI) has edged up for the third successive time, in line with expectations. According to One World Shipbrokers, the MSI has reached 54.3 in its 14th edition, ticking over the level of 53.6 reported in the previous edition. The development continues a positive carrier outlook. 

According to the feedback received from the 25 globally positioned MPP carriers that comprise this edition the rise is almost entirely fuelled by the longer voyage durations resulting from the Gulf of Aden and Red Sea being all but impassable.

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“With the war in Gaza entering its ninth month and with Houthi air strikes continuing, the disruption to the wider shipping markets and especially the container sector is starting to permeate the MPP sector once again as container rates continue their upward beat in 2024,” One World Shipbrokers’ analysts say.

The Drewry World Container Index (WCI) is reporting a threefold leap in aggregated container rates since the beginning of the year and whilst still far off the peak of the pandemic period, analysts and shippers are reporting that price pressure is set to continue.

Despite the current disruption not yet leading to overflow, the MPP sector is receiving inquiries for break bulk cargo that would normally be containerised. MPP carriers have reported improving sentiment across all index questions for the second consecutive time. Particularly, the 6-month outlook, which has been a key indicator since mid-2022, is now approaching an all-time high, indicating potential for the months ahead.

The MPP order book is still at low levels. Most orders are for replacement tonnage rather than fleet expansion. Longer voyages are reducing cargo capacity and affecting charter opportunities for operators. Carriers are hopeful for a better commercial landscape in the coming months.