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Chinese shipowners in growth mode: dominating bulk carrier deals in 2024
Chinese shipowners have accelerated their dry bulk investments this year, leading in both the newbuilding and second-hand markets
Riviera has reported that the Chinese government has instructed state-owned shipping companies to construct more than 100 bulk carriers in the near future. A recent major deal involving Cosco exemplifies their significant appetite for tonnage.
Additionally, shipbuilding sources indicate that China Merchants is preparing to place another substantial order, particularly targeting the Newcastlemax segment.
Ordering rally
Examining this year’s transactions, Eirini Diamantara, research analyst at Xclusiv Shipbrokers, told Riviera that from January to September, Chinese shipowners placed orders for 144 bulk carriers out of a total of 386 vessels, capturing a 37% share of the global market.
Notably, while global newbuilding contracts have declined by approximately 20% compared to the same period last year, orders from Chinese owners have surged by about 41%.
Among the vessel types ordered, Ultramax and Kamsarmax bulk carriers are the most favored by Chinese owners, accounting for 42% and 38% of their activity, respectively. Specifically, a total of 61 Ultramaxes and 54 Kamsarmaxes have been contracted, while Newcastlemax vessels follow with an 8% share, comprising orders for 12 vessels.
The S&P market
Chinese shipping companies have also intensified their investments in second-hand tonnage. Data from Xclusiv Shipbrokers reveals that from January to September, Chinese owners purchased 158 bulk carriers out of 612 sold during the same period, representing a 26% share of the market.
These transactions have increased by nearly 74% compared to last year, reflecting a broader rise in global S&P activity, with overall transactions up 35% year-on-year.
In the second-hand market, Chinese owners predominantly favor Supramax and Capesize bulk carriers, acquiring 47 and 33 vessels, respectively, which correspond to 30% and 21% of total activity. Panamax, Handysize and Post-Panamax vessels follow, with shares of 15%, 8%, and 8%, respectively.
Chinese companies have also been active in the sale of bulk carriers, having sold 115 vessels in 2024, a 74% increase compared to the previous year.
Stimulus measures to benefit the dry bulk sector
Recently, China’s central bank introduced a comprehensive monetary stimulus package aimed at revitalising its slowing economy and restoring investor confidence, while also outlining a plan to support the struggling property sector. According to Xclusiv Shipbrokers, these measures seek to combat sluggish growth and address deflationary risks.
Analysts believe that one of the primary beneficiaries of a recovering Chinese economy will be the dry bulk sector. They emphasized, “A revival of the property sector will lead to increased demand for iron ore and coal - two key commodities imported by China - which would directly benefit bulk carriers.”
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