Container shipping companies are once again using multipurpose vessels (MPVs) to handle a surge in global demand and disruptions in the Red Sea, similar to strategies used during the COVID-19 pandemic. The Toepfer Multipurpose Index, which predicts rental rates for 12,500-deadweight-ton ships with heavy-lift capacity, shows a steady increase in rates as more container cargo spills over into these types of ships.
The latest TMI report indicates that larger MPVs, which can carry more containers, are being diverted from their usual breakbulk (non-container) duties to be used by container shipping companies. This shift is due to rising container shipping rates and significant congestion at ports. Yorck Niclas Prehm, head of research at Toepfer, mentioned that using MPVs and breakbulk terminals can provide faster and more reliable transit times when container ship ports are congested.
Breakbulk and project carriers are also seeing more container bookings. Container shipping companies are securing these larger MPVs on time-charter at much higher rates than what these vessels would earn in the breakbulk market.
The TMI is expected to rise in July but will still be below its level from the previous year. The report suggests that owners and operators anticipate rates to continue increasing over the next six to twelve months due to ongoing demand and logistical challenges in global shipping.
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