MPV Order Book reflects the market and remains slim
In reply to a question as to why the fleet is under-invested, Oatway said: “This sector was in decline for some ten years prior to the pandemic; rates in 2019 were barely above operating costs.
The Beluga case and the withdrawal of the KG schemes have meant that there is little, if any, outside investment for this sector.
“Operators have had 12-18 months of high rates – it is not long enough to finance a building boom – but for some of the larger carriers, the few newbuildings we have seen are linked to long-term cargo commitments, specifically in the renewables sector. That is likely to be the way forward for operators in this sector, to look at longer-term contracts that offer shippers schedule reliability and stable rates and give the carriers the incentive to modernise their fleet.”
MPV fleet supply graphs show a clear bulge in newbuildings across the sector between 2007 and 2013. Then the lack of recent deliveries is clear, said Oatway, especially in the project carrier and heavy lift vessel segments. “In this sector there is barely anything in 2017-21, then we have maybe half a dozen newbuildings in 2022, but it really is very thin on the ground. The orderbook schedule picked up in the third quarter 2022 but represents just four per cent of the operating fleet.”
Although the MPV fleet has been in decline, due to low scrapping levels it actually grew in 2021 and that will happen again in 2022, she said.
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