Two more ships ordered! Huayang Shipping continues to update its fleet

On March 17, Huiyang Shipping announced that it will order two 39,000-ton high-specification bulk carriers from Japan's Inland Sea Shipbuilding. The Price of each ship will not exceed US\$35.375 million, and the total transaction amount will not exceed US\$70.75 million (approximately RMB 511 million).

The delivery time of these new vessels has not yet been determined. Industry insiders estimate that the new vessels may be scheduled for delivery in 2028. For reference, according to Clarkson's data, the current Price of a new 38,000-42,000 DWT bulk carrier is US\$30.5 million, a slight increase compared to US\$30.25 million in the same period last year.

In recent years, Huiyang Shipping has been gradually updating its fleet by ordering 6-8 new vessels annually. As of now, Huiyang Shipping has a total of 13 new vessels under construction, including 2 82,000 DWT and 11 40,000 DWT bulk carriers, which will be delivered successively from 2025 to 2027. After the latest order is finalized, its backlog of orders will reach 15.

In 2024, Huiyang Shipping achieved operating revenue of NT\$20.37 billion (approximately RMB 4.463 billion), a year-on-year increase of 16.3%; accumulated operating profit for the whole year was NT\$6.8 billion (approximately RMB 1.49 billion), a year-on-year increase of 89.7%; and pre-tax profit for the whole year was NT\$6.06 billion (approximately RMB 1.328 billion), a year-on-year increase of 78.3%.

As of the beginning of this year, Huiyang Shipping controlled 134 vessels, including 1 Cape-size vessel, 28 Handysize bulk carriers, 38 Handymax bulk carriers, 29 Supramax vessels, 35 Panamax bulk carriers, and 3 Others.

Analysts pointed out that due to the prolonged Russia-Ukraine war, many important infrastructure docks have been severely damaged, making it difficult for large vessels to berth. According to recent freight rates, the first wave of reconstruction opportunities has the greatest demand for small vessels, and then will expand to medium-sized and then large vessels.

Excluding the latest order, Clarkson's data shows that Inland Sea Shipbuilding currently has a total backlog of 4 120,000 DWT vessels, including 3 bulk carriers and 1 ro-ro passenger ship, all of which will be delivered this year.

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