Strong project cargo demand in 2019 to drive MPV rates up - Drewry
17 Apr 2019 - by Staff reporter
An increase in demand for project cargo is set to push multipurpose and heavylift shipping rates up during 2019, according to maritime analyst, Drewry.
The project cargo market is expected to be strong in 2019 as it was boosted by the rise in oil prices through the first half of 2018.
However, the global economic outlook has deteriorated and continued uncertainty in Europe due to Brexit suggests that multipurpose shipping is not out of the woods yet.
The demand for the multipurpose vessel (MPV) fleet is projected at an average annual growth of 1.2% to 2023, according to Drewry. This is, however, much stronger in the short term, at 3.8% in 2019 and 1.4% in 2020.
“As the global economy is expected to slow down after 2020, increased competition for cargo will eat into market share,” said Drewry in a report.