News
The multipurpose vessel (MPV) market shows a positive outlook for charterers and shipowners, despite challenges such as geopolitical conflicts and expected trade tariffs, according to Drewry.
Drewry sees that its Breakbulk Sea Transport Indices for General Cargo and Project Cargo will move up in 2025, but that the gap between the General Cargo Index and the Project Cargo Index is likely to widen, driven by the distinct dynamics affecting both shipping markets.
In the charter market, general cargo rates are projected to rise between 1% and 7% (for different vessel sizes), while project carrier charter rates are expected to increase 10% to 20% in 2025.
On the supply side, the MPV fleet did not grow as per our expectations, as fewer vessels were delivered and demolished, resulting in fleet growth that was not aligned with our projections; the total capacity stood at 60 million deadweight tons. However, only a few orders were placed in the second half of 2024. The number of vessels scheduled to be delivered by 2026 has been tweaked, and it is indicated that deliveries are likely to be muted over the next two years. A significant portion of general cargo freighter orders scheduled for 2025 will be replacement tonnage; hence, growth is anticipated be marginal.
Additionally, the increased supply of containerships will intensify competition with MPVs. On the contrary, a tight supply of project cargo carriers is foreseen to persist due to a low orderbook, resulting in higher charter rates. Furthermore, if delays in deliveries increase in 2025, rates may be seen to surge next year for project cargo.
