China's Shandong Shipping has cashed in on rising bulk carrier values with the sale of a 10-year supramax.
The state-owned company scored top-dollar bids for the vessel on Guangzhou Shipping Exchange's online auction platform GSE on Friday last week.
Six bidders vied for the Chinese-built, 56,500-dwt Shandong Hai Sheng (built 2011), which was sold for CNY 110.1m ($17.1m), topping the $15.98m price tag indicated by VesselsValue.
The reserve price was set at CNY 95m and the ship was sold in two hours after 76 bids, GSE said.
The platform did not disclose the buyer, but shipping sources identified Chinese logistics company Yu An as the winning bidder.
A Shandong official confirmed the sale, adding that the transaction was part of its plans to keep a modern, environmentally friendly fleet.
The company has lined up three more bulkers for sale on GSE and Zhejiang Shipping Exchange’s auction platform JSE.
The trio is the 56,700-dwt Shandong Hai Tong (built 2012), 76,100-dwt Shandong Chong Wen and 75,200-dwt Shandong Hai Chang (both built 2011).
Shandong Shipping has a fleet of 69 vessels on the water, according to Clarksons’ Shipping Intelligence Network.
In July, it was reported to have ordered two kamsarmax bulkers at Dalian Shipbuilding Industry Co (DSIC), lifting to four its tally of 85,000-dwt newbuildings there.
The quartet will be built by DSIC subsidiary Shanhaiguan Shipbuilding Industry and is slated for delivery between late 2022 and 2023.
Shandong also has two very large ethane carriers under construction at Jiangnan Shipyard; two MR tankers booked at New Times Shipbuilding; four scrubber-fitted, 210,000-dwt newcastlemax bulkers at Cosco Heavy Industries; and a 210,000-dwt newcastlemax at Qingdao Beihai Shipbuilding Industry.
An increasing number of Chinese shipping companies are keen to cash in on booming bulker values by selling existing tonnage and newbuildings via online auction platforms.
Participants often prefer platforms, as the deals can be done quickly on the seller’s terms without the time-consuming back-and-forth negotiations using traditional broking channels.
Shipping outfits that have carried out such transactions include Jiangsu Ocean Shipping, AVIC International Leasing, China Huarong Financial Leasing and Seacon Shipping.
