Taiwanese shipowner Hsu Chih Chien — CC Hsu — has snapped up Shunzan Kaiun’s 206,000-dwt Sen Oku (built 2006), according to market sources.
Hsu's privately-owned Eddie Steamship bought the bulker that will be bareboat chartered to Shandong Shipping Asset Management (SAMC), Eddie's capesize operating partnership with Shandong Shipping Corp and mainland financial players.
It is the fourth capesize that Eddie has purchased for charter to SAMC this year.
A source close to the transaction told TradeWinds that Eddie paid $14.7m for the ship.
It is to be delivered in late January, and SAMC has submitted the new name SAMC Transporter for the approval of Chinese regulators.
Brokers have reported the sale as being to Chinese interests but at a lower price level.
Sen Oku has been operated in the fleet of Mitsui OSK Lines and will now serve Shandong Shipping contracts of affreightment (COA) with Brazilian miner Vale.
SAMC is growing its fleet rapidly, and has just taken delivery of two capesizes that Eddie purchased in October, which will serve iron ore COA business with Peru and Western Australia.
Until now, all acquisitions have been of older China Steel Express vessels built at Kaohsiung's CSSC at lower price levels. But sales to Eddie have now cleaned out China Steel Express's oldest tonnage.
TradeWinds understands that Eddie is continuing to scout purchase candidates but has no firm target for the eventual size of the SAMC fleet.
The source believes Japanese tonnage such as the Sen Oku will continue to be available, especially as Japanese owners downsize their fleets in anticipation of the country's shift from coal to nuclear power.
However, at the same time, demand among buyers for such ships has increased.
"When Eddie and the Japanese owner were discussing Sen Oku, there did not seem to be that much competition for the vessel," the source said. "But, in the past week or 10 days, there is much more interest."
TradeWinds reported earlier on strong buyer interest for the NYK-controlled, 206,000-dwt MG Courage (built 2007). Brokers said four or five "big-name players" had turned out to inspect it.
Mainland backing
The SAMC venture comes with the backing of mainland cargo interests as well as finance players.
The planned partnership was announced in 2018 but went live only in June with the delivery of the 175,800-dwt SAMC Eddie (built 2002) from China Steel Express. Eddie paid $8.8m for the ship.
TradeWinds reported in October that Eddie had added two more CSSC-built China Steel Express veterans — the 175,800-dwt SAMC Integrity (built 2002) and SAMC Responsibility (built 2003) for $9.2m and $9.3m, respectively.
Ships bought for SAMC earn a flat bareboat rate for Eddie for two years, after which there are options for renewal or purchase.
TradeWinds has previously reported that SAMC's strategic shareholders include Eddie, as owner of the SAMC vessels with a 20% share in the operating entity; provincially-owned industrial shipping company Shandong Shipping Corp, as charterer with 38%; and Ocean Capital Shipping Corp, an entity believed to be backed by Chinese state-owned leasing companies, with 42%.
