113.4 Million Yuan Supramax Bulk Carrier "Hua Rong 5" Successfully Auctioned | Shipping Tribune

At 11:00 on April 8, after 209 rounds of bidding, the 52,000 DWT Supramax bulk carrier " Hua Rong 5" – built by Zhejiang Donghong Shipbuilding Co., Ltd. and completed on May 21, 2012 – was sold for 113.4 million RMB on "Paichuanwang" (Auction Vessel Network). This price reflects market confidence in the dry bulk sector.

In early 2021, the global COVID-19 pandemic growth slowed. With promising vaccine prospects, industrial and grain transportation demand increased, leading to tightening vessel supply and rebounding freight rates.

From the international market perspective, recently, the South American route has seen ample grain shipments, while an influx of coal cargoes in the Pacific region has increased vessel delays and reduced available tonnage, keeping freight rates firm. The TCE (Time Charter Equivalent) for the Trans-Atlantic route has risen to around $28,000 per day.

In the Chinese market, a significant number of vessels operating both domestic and international trades remain engaged in foreign routes. Meanwhile, rising coal prices and better-than-expected coal consumption have boosted owners’ optimism about future market prospects. Coastal coal freight rates have climbed from RMB 35-40/ton in late February to the current RMB 50-55/ton, further driving strong demand for secondhand vessels.

The latest China Ship Trading Price Index (SSPI) composite hit 965.54 points – a decade high. The dry bulk sub-index reached 884.72 points, surpassing even its previous peak in October 2018.

Newbuilding prices also rose significantly, with March global orders hitting a 6-year monthly high. Clarksons Research data shows 133 new vessel orders totaling 5.2 million CGT (compensated gross tons) in March – a 76% monthly and 320% yearly increase.

Overall, economic stimulus policies worldwide are driving robust market recovery. China’s demand for bulk commodities will continue injecting strong momentum, sustaining short-to-medium term dry bulk market vitality.