CSE Bulk

Kaohsiung based shipowner and operator CSE Bulk (China Steel Express Bulk) has put on the market to sell capesize bulk carriers:

• MV China Steel Growth (2002 built 176K DWT)
• MV China Steel Excellence (2002 built 176K DWT)

Taiwanese shipowner and operator CSE Bulk (China Steel Express Bulk) has been in fleet renewal programme. Furthermore, CSE Bulk (China Steel Express Bulk) is planning to sell four (4) more vintage capesize bulk carriers as the company receives the delivery of eight (8) new building bulk carriers. CSE Bulk (China Steel Express Bulk) is the shipping arm of Taiwan’s largest steel producer. MV China Steel Growth and MV China Steel Excellence might be paid around $20 million enbloc.

Depending on shipping market conditions, CSE Bulk (China Steel Express Bulk) is aiming to offload all vintage capesize bulk carriers till 2023. Additionally, CSE Bulk (China Steel Express Bulk) is aiming to sell other vintage capesize bulk carriers in the fleet:
• MV China Steel Integrity (2002 built 176K DWT)
• MV China Steel Responsibility (2003 built 176K DWT)

CSE Bulk (China Steel Express Bulk) has been selling vintage bulk carriers as the company started taking delivery of eight (8) 208K DWT newbuildings bulk carriers in 2019. Four (4) of these newbuildings bulk carriers are scrubber-fitted.

As of 1 January 2020, according to IMO (International Maritime Organization) sulphur cap, scrubber-fitted ships will continue consuming high-sulphur fuel oil. On the other hand, non-scrubber-fitted ships will have to use bunkers with no more than 0.5% sulphur content. This situation created a wide spread between high-sulphur and low-sulphur bunker prices. Therefore, estimated daily earnings of scrubber-fitted capesize bulk carriers surpassed non-scrubber-fitted capesize bulk carriers by $8,100 per day. Eventually, spread will narrow as the production of IMO (International Maritime Organization) 2020 Rules compliant bunkers will increase in the market.

Kaohsiung based shipowner and operator CSE Bulk (China Steel Express Bulk) was established in 1996 by China Steel which is 20% owned by the Taiwanese government.
Currently, CSE Bulk (China Steel Express Bulk) has a fleet of nineteen (19) capesize bulk carriers and seven (7) handysize bulk carriers. CSE Bulk (China Steel Express Bulk) use capesize bulk carriers to import coking coal and iron ore and use handysize bulk carriers to export steel products. Mainly, CSE Bulk (China Steel Express Bulk) is responsible for the shipping requirements of China Steel.

Executives of CSE Bulk (China Steel Express Bulk) has prudent approach when ordering newbuilding bulk carriers. For example, in 2017 and 2018, when newbuilding prices were at historic lows, CSE Bulk (China Steel Express Bulk) ordered two (2) scrubber-fitted capesize bulk carriers at $47.5 million each at compatriot Taiwan CSBC Shipyard and another two (2) at $46 million each. Furthermore, CSE Bulk (China Steel Express Bulk) also ordered two (2) non-scrubber-fitted capesize bulk carriers at Marine United at $45 million each and two (2) at $46 million each.

China Steel, the parent company of CSE Bulk (China Steel Express Bulk), has a production capacity of 10 million mtons of crude steel annually.

Currently, newbuilding non-scrubber-fitted capesize bulk carrier has a price tag of $49.5 million. So, previous deal has generated huge profits for CSE Bulk (China Steel Express Bulk).

In October 2019, IMO (International Maritime Organization) is determined to reduce CO2 emissions from international shipping by 50% from the 2008 level by 2050. Even tough, Taiwan is not a member of IMO (International Maritime Organization), CSE Bulk’s (China Steel Express Bulk’s) ships will need to meet IMO (International Maritime Organization) regulations as these ships are traded in international waters. International shipping’s CO2 emissions war might cost around $1.4 trillion.