With charter rates for multipurpose (MPV) ships, including both breakbulk and heavylift vessels, not expected to return to pre-Covid-19 levels until the end of 2021, maritime consultancy Drewry says this puts newbuild investment at particular risk.
And if the global pandemic is not contained - given a projected slump in project cargo demand - the risk is even greater.
“The multipurpose and heavylift sector sits between the container and dry bulk shipping segments and, as such, is subject to the market changes from each of these,” Drewry explains. “It is our opinion that the influence of these competing sectors has as much of an effect on the MPV charter market as the pure economics of supply and demand.”
If Covid-19 is contained globally over the next few months and there is no second wave, Drewry believes this will allow the global economy and dry cargo demand to rebound in 2021.
But a second wave could totally change these predictions – and at present the only certainty is uncertainty.
