The Drewry Multipurpose Time Charter Index continued to decline over November reaching USD9,950 per day – slightly above the analyst’s forecast and 0.7 percent below October’s average rate. Rates in the smaller shortsea sector were steadier than those for the larger vessels. Drewry expects that trend to continue to the year end as holidays in most parts of the world impact both demand and port stays, with the potential to shave a further percentage point from the index as the year closes.
The analyst added that most owners appear to be fixed over the holiday period in an attempt to mitigate any downtime in ports. “This will also support the market somewhat, as demand remains steady in most sectors, with continued growth in the project market,” said Drewry.
Going forward to the year-end, an earlier Chinese New Year, coupled with concerns from that country regarding unrest, and the continued pressure on energy supplies in Europe, result in a weakening market outlook.
While there is little volatility in the competing sectors, Drewry anticipates that there will be further market encroachment into 2023. It, therefore, expects the index to fall to a forecast average of USD9,850 per day over December. This would represent a drop of around 8 percent year on year and a 10 percent drop since January 2021.