The demand for larger multipurpose vessels nudged the Drewry Multipurpose Time Charter Index upwards again above the forecast of the consultancy. In its latest monthly review, Drewry said the index level has gone “slightly above” its forecasted value. 

The consultancy had previously forecasted the index to land at $9,201 per day, however, the multipurpose index for July stood at $9,212 per day. It is a 0.5 per cent increase over the previous month. It is also 8.11 per cent above the July 2023 value.

“The seasonal dip for smaller vessels dampened the index increase, but demand for larger MPVs was enough to give an overall index increase for July,” Drewry’s analysts said in the monthly review.

The latest increase in Drewry’s Multipurpose Time Charter Index marks a full year of increases, and the trend is expected to continue. Drewry said that the August value is expected to inch up 0.4 per cent, reaching $9,245 per day.

Compared to the August 2023 figure, the forecasted value is 7.7 per cent higher.

The overall sentiment in the MPP sector is that there were no real effects of the summer season. Toepfer Transport said that the “summer doldrums” were less effective than previously anticipated. The overflow of cargo from the container market has intensified, particularly for larger multipurpose vessels with high TEU intake. These vessels are being diverted from their breakbulk duties by being chartered to container operators. Many breakbulk/project carriers have reported a sharp increase in the booking of containerized cargo, according to Toepfer’s analysts.

Similarly, One World Shipbrokers highlighted the effect of the longer voyage durations resulting from the Gulf of Aden and Red Sea being all but impassable.