MPV sector fights on amid tough market conditions
12 Jul 2019 - by
The effect that “Trump tariffs” is having on Chinese steel exports and related shrinkage of iron ore volumes across the world has resulted in reduced demand for multipurpose vessels (MPVs).
According to maritime consultancy firm Drewry, annual MPV growth is still sitting at around 2.1%, although slightly down 0.2% from an earlier estimation of 2.3%.
Increased competition from dry bulk and box lines has added to pressure on the MPV sector, Drewry has said.
Despite downward pressure weighing on the sector, MPV operators appear to be showing their resilience through initiatives to source new clients.
Attempts within MPV ranks to absorb the impact of current market conditions through extending the lifespan of their assets, said Drewry, could also be seen in the decrease of vessel scrapping.