Recently, Chinese dry bulk shipowner and operator Jin Hui Shipping continued to adjust its fleet structure by selling one Supramax vessel and entering into sale-and-leaseback agreements for two vessels with ABC Financial Leasing Co., Ltd. (referred to as “ABC Leasing”).
On July 4, Jin Hui Shipping stated in an announcement that its indirect subsidiary, Jingang Marine Inc., had signed an agreement with Huwell Shipping Pte. Ltd. to sell the bulk carrier “Jin Gang” (56,927 DWT, built in 2009) for $10.8 million (approximately HK$84.24 million). The vessel is expected to be delivered between July 7 and August 15, 2025.
It is reported that the “Jin Gang” is currently under a time charter contract until September 2025. As a result, the buyer and seller also signed a bareboat charter agreement for four to six months, under which the vessel will be leased back to the seller after delivery for continued operation until the charter contract expires.
Jin Hui Shipping stated that this sale provides an opportunity to realign its fleet portfolio and reduce operational risks in the current high-risk and volatile market environment. Additionally, the transaction will enhance the company’s working capital position, further strengthening liquidity and overall financial health.
According to shipping industry tracking, this sale marks Jin Hui Shipping’s second transaction within a week aimed at supplementing working capital.
At the end of June, Jin Hui Shipping’s indirect subsidiaries entered into sale-and-leaseback arrangements with two subsidiaries of ABC Leasing—Tianjin Jinhai 15 Leasing Co., Ltd. and Tianjin Jinhai 8 Leasing Co., Ltd.—for two bulk carriers, the “JIN HENG” and “JIN LI,” with a total transaction value of RMB 203 million (approximately HK$222.488 million).
According to the announcement, the “JIN HENG” (approximately 63,518 DWT, built in 2014 and registered in Hong Kong) will be sold for RMB 79.75 million, while the “JIN LI” (approximately 81,567 DWT, built in 2019 and registered in Hong Kong) will be sold for RMB 123.25 million.
The announcement noted that the lease terms could extend up to 84 months. For each three-month lease period, Jin Hui will pay a fee consisting of fixed and floating rental components. Under the terms of the lease agreements, each charterer has the right to purchase the respective vessel by providing 60 days’ written notice to the buyer (as applicable) starting from the third anniversary of the vessel’s delivery date under the lease agreements, up until the last day of the lease term. The purchase price includes the remaining cost balance, any applicable prepayment fees specified in the lease agreements on the exercise date, and other outstanding payments due under the agreements, along with accrued interest.
Data shows that, as of now, Jin Hui Shipping operates a fleet of 31 dry bulk carriers, including 24 owned vessels and 7 leased vessels, with a total deadweight of approximately 2.3 million tons. The fleet covers various vessel types, including Capesize, Panamax, Ultramax, and Supramax.
