Jinhui Shipping & Transportation has signed a deal to operate its largest bulker so far, as it continues to favour charters instead of newbuildings.
The Oslo-listed company said it has fixed the 207,700-dwt newcastlemax True Neptune (built 2017) for between 33 and 36 months, with delivery in the first quarter of 2025.
The Hong Kong-based group said the charterparty is Olam Maritime Freight of Singapore.
Shipping databases Clarksons, Equasis and VesselsValue cite the ownership as lying with companies linked to US bank JP Morgan.
Jinhui is paying $31,500 per day, with the minimum term costing $26.64m, excluding a 3.75% address commission.
The Baltic Exchange’s capesize index rose to $22,893 per day on Wednesday.
Jinhui controls 22 supramaxes and ultramaxes, and is awaiting delivery of two secondhand capesizes of 181,000 dwt and 182,000 dwt, plus a panamax.
“In view of rising vessel prices, the aggregate of the daily running cost, depreciation, cost of interest, cost of principal payment, insurance and other maintenance costs is high for running a vessel. Besides, the cost of borrowing is increasing under the inflationary environment,” Jinhui said.
“Locking in a long-term contract with minimal hire actually has the benefit of bypassing inflationary pressure and other cost variations which the company would have to bear if we purchase a vessel,” the owner added.
Earlier this month, Jinhui agreed to charter the 61,452-dwt Pacific Lily (built 2016) for up to two years at $16,500 per day.
It expects to pay just over $10m for the minimum charter period of 22 months to the owner, Zhejiang Shipping (Singapore).
Older ships sold
Jinhui is looking to modernise its fleet of bulkers and has sold off six older supramaxes and two post-panamaxes over the past two years or so.
In mid-February, Jinhui confirmed its purchase of a modern kamsarmax from Nisshin Shipping of Japan and agreed to pay $31.1m for the 81,600-dwt Vincent Trader (built 2019).
The acquisition came soon after Jinhui’s announcement that it had signed a deal to buy its first capesize bulker, the Japanese-built, 181,300-dwt New Delight (built 2012), from Hsin Chien Marine for $30.95m.
