Jinhui Shipping & Transportation has sold another veteran supramax bulker as it looks to improve the age profile of its fleet.

The company confirmed that it had sold the 52,525-dwt Jin Quan (built 2006) to a fellow Hong Kong shipowner for $9.65m.

The Hong Kong-flagged vessel is due to be handed over to its new owners by the end of January 2024. It has been in the Jinhui fleet since 2021.

Jinhui said the sale would allow it to enhance its working capital and further strengthen its liquidity as well as optimise the fleet profile.

“We continue to renew our fleet with higher quality, fuel-efficient and modern vessels, which seek to fine-tune the quality and lower the overall age profile of our fleet,” Jinhui said.

“We try to strike a good deal as possible, the balance of additional maintenance costs that is associated with the ageing of a vessel, the expected revenue-generating ability and cargo flexibility when compared to younger vessels.”

This is only the second vessel the company has sold this year following the disposal of the 52,700-dwt Jin Feng (built 2004) in September 2023 for $8.1m.

However, the company recently acquired the 63,800-dwt ultramax Hanton Trader III (built 2014) for $20.43m from Vega Maritime of the United Arab Emirates.

News of the latest vessel disposal comes as Jinhui reports a third-quarter loss of just over $8m, taking its losses for the year to $27.3m.

Revenue for the third quarter of 2023 was just over $20m, representing a decrease of 49% as compared to the $39.6m achieved in the same quarter in 2022.

“Market freight rates for the first nine months of 2023 were weak due to a number of factors including slowing global economic growth, easing of port congestions that led to the release of tonnage capacity, and poor market sentiment due to higher inflation and interest rates,” the shipowner said.

“The average daily time charter equivalent rates earned by the group’s fleet decreased 55% to $8,796 for the third quarter of 2023 as compared to $19,562 for the corresponding quarter in 2022,” it added.