A possible economic recession, persistent port congestion in the US and Europe, and the impact of China’s recent pandemic shutdowns are causing breakbulk charter rates to start falling. The average daily rate for multipurpose/heavy-lift vessels dropped by 0.6% in June, with predictions of dropping another 4.9% by the end of the year.
In the long-term, breakbulk carriers are hoping that high oil and gas prices will lead to an increased investment in energy projects, which will keep rates high. Also, countries reducing their dependence on Russian energy imports will invest in energy infrastructure to make up for the difference.
1. Short-term breakbulk pessimism offset by long-term rate strength, Journal of Commerce, July 11, 2022. Accessed July 25, 2022.