Issued on 14 Mar 20
Time charter rates in the multipurpose shipping sector have dropped over the last month, according to shipbroker Toepfer Transport.
The average daily time charter rate for a 12,500 dwt/F-type heavy lift vessel stands at USD7,221 for March 2020. In February 2020, the rate was USD7,415.
The drop in freight rates is not surprising. The coronavirus (Covid-19) outbreak is weighing heavily on international shipping. Drewry expects that the pandemic will lead to weaker than expected full-year cargo demand growth for multipurpose and heavy lift vessels and has downgraded its outlook for the sector.
A rebound in rates appears to be on reliant on containment – the longer and more widespread the Covid-19 outbreak becomes, the more damage it will cause.