Continued supply chain disruption to buoy multipurpose shipping

According to Drewry’s recently published Multipurpose Shipping Forecaster, the charter market for multipurpose vessels (MPVs), including both breakbulk and project cargo carriers, is expected to remain strong through 2022, supported by the continued prevalence of Covid-19 and the resultant global supply chain disruption.

But charter rate inflation will be checked by slowing cargo demand growth and expanding capacity in the competing fleets of dry bulk and containerships from 2023.

“It is clear that 2021 consolidated our belief that the charter markets for containerships and dry bulk carriers have as much of an effect, and sometimes more, than the pure economics relating to the MPV fleet. Although it was not always clear that weak charter rates pre-2021 were exacerbated by the competing fleets driving them lower, it has been very apparent that the current booming market is underpinned by even higher rates in these other sectors.