Two vessels worth 1.1 billion! Beihai Shipbuilding wins another bulk carrier order from Evergreen Marine.

Yumin Shipping returns to Qingdao Beihai Shipbuilding, placing an order for two 180,000-deadweight-ton Capesize bulk carriers.

On March 31, Yumin Shipping announced that its subsidiary, Yumin Shipping (Singapore), signed contracts with Qingdao Beihai Shipbuilding and CSSC Trading for the construction of two 180,000-deadweight-ton bulk carriers. The Price of each ship is approximately US$75-79 million, with a total transaction value of approximately US$150-158 million (approximately RMB 1.074-1.131 billion). Delivery of the new vessels is scheduled for 2028.

For reference, Clarksons' data shows that the Price of newly built 180,000-182,000 deadweight ton Capesize bulk carriers has fallen from US$76 million at the end of last year to US$74 million, but is still more than 8% higher than the US$68.5 million in the same period last year.

Including the latest order, Yumin Shipping currently has 10 bulk carriers under construction, including six 64,000-deadweight-ton Ultramax vessels and four 180,000-deadweight-ton Capesize vessels. At the same time, Yumin Shipping continues to evaluate shipbuilding plans for various vessel types and does not rule out chartering vessels in the market to increase its immediate combat effectiveness.

Yumin Shipping said it is optimistic about the continued growth in demand for AI and electric vehicles, driving demand for iron and aluminum ore transportation. In particular, the increase in iron ore output from West Africa in the fourth quarter will begin shipping, and the rapid increase in bauxite transportation demand in recent years will increase the demand for Capesize vessel ton-miles.

According to Clarksons' estimates, China's iron ore imports will remain high this year, replacing domestic low-quality iron ore with imported high-quality iron ore. At the same time, many countries are competing in the electric vehicle industry chain, and bauxite is an important raw material for battery production, which also drives bauxite transportation demand.

It is understood that Yumin Shipping is the largest owner of Capesize bulk carriers in Taiwan, with 25 Capesize vessels. In recent years, Yumin Shipping has continuously updated and expanded its fleet, aiming to achieve a double growth target of 100 vessels and 10 million deadweight tons by 2029. The energy-efficient features of its fleet also exempt Yumin Shipping from future shipyard renovations or speed reductions that may affect capacity.

Official data shows that Yumin Shipping currently owns Capesize, Panamax, Kamsarmax, Handysize, cement carriers, LR1 tankers, Very Large Crude Carriers (VLCCs), Very Large Ore Carriers (VLOCs), and Crew Transfer Vessels (CTVs). The average age of its own bulk carrier fleet is about 6.5 years. Including joint ventures and vessels under construction, Yumin Shipping's fleet capacity is 79 vessels, with a total deadweight tonnage of 9.52 million tons.

At the end of last year, Yumin Shipping just ordered two 180,000-deadweight-ton Capesize bulk carriers from Hengli Heavy Industry, marking Yumin Shipping's first collaboration with Hengli Heavy Industry. Prior to this, most of Yumin Shipping's Capesize bulk carriers were built by Beihai Shipbuilding and Waigaoqiao Shipbuilding.

Yumin Shipping's order is Beihai Shipbuilding's first new ship order this year. It is understood that Capesize bulk carriers are Beihai Shipbuilding's main construction type. According to Clarksons' data, Beihai Shipbuilding currently has as many as 51 Capesize bulk carrier orders, far exceeding the second and third-ranked Hengli Heavy Industry (18 vessels) and Imabari Shipbuilding Saijo Shipyard (18 vessels), ranking first globally.

Excluding the latest order, Clarksons' data shows that Beihai Shipbuilding currently has a total of 57 vessels with approximately 13.3 million deadweight tons on order, including 51 bulk carriers, 5 tankers, and 1 container ship, with delivery dates extending to 2028.