The October edition of One World Shipbrokers’ market sentiment index (MSI) stands at its lowest level since its inception in March 2021.
At 51.5, the October edition of the MSI continues to track the decline in multipurpose sentiment that started at the peak in April 2022 and has persisted ever since, apart from a short-lived bounce in April 2023.
One World Shipbrokers’ managing director Justin Archard said: “Whilst carriers reported waning confidence to all the questions that make up the index, this time it was the short-term outlook that fell the least.
“Typically, the northern summer season is a challenging period in the multipurpose sector, and this year was one of the most challenging in recent times for carriers in all geographical sectors. A lift in short term confidence as we enter one of the highest activity periods of the year is therefore in keeping with annual cycles.”
Longer-term confidence in demand growth remains intact led by an expanding project sector, which is backed by a supply side that is unlikely to add any meaningful capacity in the coming few years.
“Tendering activity among the project forwarder community is reported to be very high with oil and gas related projects leading the charge as high oil prices continue to underpin new project investment,” Archard continued. “Cargoes coming from the renewables sector though have largely disappointed this year. Delays and postponements due to financing and economic factors are working their way through a complex political and legislative process and whilst it is expected solutions will be found it is without doubt dampening the multipurpose outlook.”
