Fears that the Ukraine war would affect the availability of multipurpose vessels (MPVs) have proven unfounded.MPVs are widely used for out-of-gauge and large project cargo consignments.According to the May edition of Drew r y’s Multipurpose Shipping Forecaster, the Russian invasion of its neighbour brought some uncertainties to the global MPV cargo demand. However, the impact has proven to be less severe than in the dry and liquid bulk sectors. One of the reasons is that the demand for MPVs to be used as container vessels to fill the shortage of slots on container vessels during the Covid lockdowns has largely subsided. Toepfer Transport, which publishes a monthly multipurpose rate index, sees an uptake from project cargo.“On the demand side there is still limited activity from the minor bulk trades but increasing activity from the industrial projects and infrastructure markets,” it says in its June 2023 report.To e p f e r Transport’s monthly multipurpose rate index held steady at the start of June. The average daily time charter rate for 12 500 dwt/F-types heavy lift vessels rose marginally to $14 421. In May, the daily rate was $14 360.There is, however, a potential shortage of capacity on the horizon.Strengthening sanctions on Russia have taken their toll on its vessel manufacturing capabilities, which is expected to affect vessel supply in the next couple of years, according to Ferenc Pasztor, deputy head of research at Drewry.The country has a shortage of vessel parts beyond marine engines. “While the exact impact of the above on multipurpose vessels being built in Russia is unknown to us, we expect the same challenges to be apparent in the sector, and hence strong headwinds to domestic yards, which have been supplying MPVs for the Russian domestic market.” Toepfer says just 28 ships (2.92% of the MPV f leet by deadweight) are under construction or on order. Many are already contracted to long-term projects and will be unavailable for spot charters.“Keeping up with the demands for a modern f leet with low CO2 emissions and capability to shoulder the transportation of wind turbines and other project cargo to drive energy transition remains a matter of concern,” the report states.
