MPP Index normalisation continues, newbuildings prices edge up

Conditions in the multipurpose (MPP) vessel sector continue to differ for various types of carriers according to the latest monthly report by Toepfer Transport. The shipbroker is reporting a normalisation of its index rate as well as a significant increase of newbuilding prices. 

The Toepfer Multipurpose Index (TMI) for the month of October landed at $13,160 per day, which was 0.55 per cent above the TMI level reported in the previous month. For the following six months, Toepfer Transport expects the index to tick up 2.26 per cent. A jump of 3.52 per cent is expected for the next twelve months.

Looking back twelve months and October 2023 when the TMI was at $12,572 per day, the current level is 4.78 per cent higher.

“The normalisation at an Index rate of around $13,000 continues with the Far Eastern and Middle Eastern trades being the drivers which mitigate the weaker performance of the European and Americas trades,” Toepfer Transport’s analysts say.

“While operators of highly sophisticated heavy-lift/project vessels are enjoying healthy demand and a decent level of forward bookings, the majority of carriers are facing a more sluggish market and an imbalance in utilisation across the various trade regions,” according to the analysts.

MPP newbuilding prices edge up

On the vessel front, Toepfer Transport reported ‘a significant increase’ in prices for MPP newbuildings. The increase in price, as well as the extension of delivery times, is the result of strong demand for newbuilding capacity from other shipping segments.

Newbuilding vessel prices for the 9,000 dwt, 12,500 dwt and 30,000 dwt units ticked up from $22 million, $31.5 million and $52.5 million, respectively, to $22.25 million, $31.75 million and $52.75 million.

There was less change in the second-hand market, where the prices of 9,000 dwt and 30,000 dwt vessels went up $10.75 million and $19,00 million, to $11.25 million and $19.50 million, respectively. There was however, no change in the 12,500 dwt MPP segment where the prices remained at $15.5 million.

It should be noted that prices are for guidance only as these strongly depend on the design/gear/quality and makers list.

“There are very few second-hand transactions for modern MPP vessels and prices continue to be challenging for buyers,” the analysts said.