In September, with the autumn heatwaves gradually subsided, high temperature in coastal areas was relieved, and the electricity consumption of residents has dropped. However, demand for industrial electricity is still strong, and daily consumption of power plants remains high after a small decline. For the high coal price, power plants are cautious in replenishment which makes almost all coastal power plants’ inventories under the red line. The freight rate of coastal dry bulk transportation rises for strong demands in late September. In the international market, the freight rate of container is fluctuating at an extremely high level, while which in dry bulk market continues to rise. Shipowners have sufficient confidence, so there is fewer ship on sale with high price. There are 73 ships auctioned in September and 37 are sold with transaction rate of 50.7%. The total starting price is about ￥1145.17m, while the total transaction price is ￥958.93m, increasing significantly.

Rigid demand in the domestic transportation market have brought massive push to the ship auction market
During the September, affected by a number of typhoons, transport capacity in China is tight, and the freight rate is boosted compared to previous period which rekindles shipowners’ confidence. According to data from Shipbid. net, in China, the total ship auctions of September are 73, which increase 10 MOM but decrease 4 YOY. Among them, bulk carriers are 19, which increase 1 MOM and chemical & tankers are 4, which decrease 2 MOM. In terms of transaction, there are 37 ships sold, which decrease 2 MOM, with transaction rate of 50.7%, decreasing from last month. In September, price of ship auction increases sharply. The total starting price is approximately ￥1145.17m, which increases ￥716.93m MOM and ￥774.39m YOY. The total transaction price is ￥958.93m, which increases ￥716.14m MOM and ￥687.63m YOY.

The coastal transportation market is steadily rising, and the international transportation market continues to heat up
The performance of international dry bulk market is different in each ship type. The Capesize, affected by the typhoon “CHANTHU” and strong activities, provides a sharp rise of freight rate. According to data from the Baltic Exchange, BCI rushes from 6000 points to 9000 points within a month, while activities of Panamax and Supramax are slightly insufficient, and the freight rate fluctuates slightly. The coastal transportation market is relatively quiet in the early September, with freight rates falling successively. While in the late September, driven by rigid demand for coal of power plants, freight rates rebounded rapidly. In terms of judicial auction, there are 38 ships auctioned in September, of which 15 are sold. The total starting price is ￥356.08m, and the total transaction price is ￥94.95m. In terms of commercial auctions, there are 35 ships auctioned, of which 22 are sold. The total starting price is ￥789.10m, the total transaction price is ￥863.98m. A number of large-scale ships are sold at commercial auctions in September, with transaction price rising sharply. Followed are some specific auctions, mostly bulk carriers. The “HUA RONG 1” sold at ￥124.10m; “B85K-9”, bulk carrier under construction, sold at $36.03m; “JOSCO SUZHOU” sold at $13.50m; “SEACON 6” sold at $15.30m. Meanwhile, there are fewer tankers traded in September, of which are mostly small -tonnage inland river tankers. In terms of other ships, there are 3 fishery ships sold with the total price of ￥5.91m, 10 engineering ships sold with the total price of ￥36.55m and no ro-ro passenger ship sold.
Source: Ship.Id