High container rates and a shortage of boxes have resulted in shippers moving from containers back to multipurpose vessels. According to Susan Oatway, senior analyst for multipurpose and breakbulk shipping at consultancy Drewry Maritime, breakbulk and heavy-lift charter rates have been in the doldrums for the last decade in the face of growing competition from the container sector.The position has however reversed, with breakbulk rates now competitive against container fees.In March, one-year time charter rates for multipurpose (MPV) tonnage, incorporating both breakbulk and heavy lift ships, reached their highest level in almost six years, according to Drewry’s Multipurpose Time Charter Index. However, despite this rally, earnings remain low by historical standards, off 40% from their all-time peak of 2007.And, Oatway warns, it could be short-lived.“Make no mistake, this recovery is fragile, as it is on the back of capacity issues in the competing sectors of dry bulk and container shipping, rather than any fundamental change in the multipurpose segment,” she commented at the release of Drewry’s Multipurpose Shipping Annual Review & Forecast.“It is true that the MPV charter market is benefiting from booming competing sector charter markets, as cargo owners seek to find capacity anywhere for their cargo. “For this reason alone we expect rates to continue accelerating through Q2. “However, as the capacity issues right themselves, this almost exponential growth rate will slow. Drewry forecasts that average annual one-year charter rates will climb 10% in 2021 and continue rising thereafter, but at a much slower pace,” says the consultancy
