Sumec Ocean Transportation

Beijing-based leasing company Huaxia Financial Leasing (HXFL) has recently signed contracts for several ultramax bulk carrier constructions with New Dayang Shipbuilding. This significant order includes eight ultramax bulk carrier newbuilds destined to be chartered by the renowned Singapore-based shipowner and operator, Sumec Ocean Transportation (SOT), marking a strategic expansion in their fleet operations. Huaxia Financial Leasing (HXFL) has committed to this expansion at New Dayang Shipbuilding, with the deal bolstering its partnership with Sumec Ocean Transportation (SOT). The agreement sees Huaxia Financial Leasing (HXFL) investing around $272 million into the state-controlled New Dayang Shipbuilding for the construction of these eight ultramax bulk carriers. This move by Huaxia Financial Leasing (HXFL) to order the ultramax bulk carriers is strategically aligned with charter agreements with Sumec Ocean Transportation (SOT), highlighting a collaborative effort to enhance maritime logistics and shipping capabilities. Sumec Ocean Transportation (SOT), as a key player in the global shipping industry, specializes in the efficient and sustainable transportation of dry bulk goods. This venture into expanding its fleet with the latest ultramax bulk carriers from New Dayang Shipbuilding is a testament to Sumec Ocean Transportation (SOT)’s commitment to leveraging state-of-the-art maritime technology for improved service delivery. Sumec Ocean Transportation (SOT) is recognized for its robust operational standards and strategic maritime solutions that cater to a diverse global clientele, underpinning its position as a leader in the shipping sector. This collaboration with Huaxia Financial Leasing (HXFL) and New Dayang Shipbuilding not only underscores Sumec Ocean Transportation (SOT)’s growth trajectory but also its dedication to enhancing its competitive edge in the maritime industry. 8-April-2024


The dynamic New Dayang Shipyard, a crucial component of the Sumec Group’s maritime construction division, has once again highlighted its robust activity in the shipbuilding industry with new orders for ultramax bulk carrier builds. The operation has drawn the attention of Huaxia Financial Leasing, based in Beijing, which has committed to the creation of eight ultramax bulk carriers at New Dayang Shipbuilding. This entity is nested within the extensive framework of the state-operated Sumec Group, known for its expansive reach in machinery manufacturing. This recent contract aligns shortly after an expansion by Ciner Shipping Industry & Trading, a maritime enterprise headquartered in Istanbul, which increased its orders by four ultramax bulk carriers at New Dayang Shipyard in Jiangsu. While the financial contours of Huaxia’s engagement remain under wraps, current market evaluations peg Crown 63 Plus ultramax bulk carriers at an approximate value of $34 million each. In a noteworthy stride during March 2024, New Dayang Shipyard disclosed its acquisition of contracts for two bulk carriers from China Construction Bank (CCB) Financial Leasing, slated for operation under Bohai Shipping (Hebei), coupled with a provisional arrangement for an additional duo of vessels. Transocean Maritime Agencies (TMA), with its base in Monaco, also advanced its fleet with an order for two 64K DWT Crown 63 Plus design ultramax bulk carriers, aiming for a 2026 delivery. Sumec Ocean Transportation, an integral arm of the Sumec Group post its 2018 acquisition of Dayang Shipbuilding, has proudly announced that these recent procurements escalate its backlog for Crown 63 Plus ultramax bulk carriers to an impressive tally of 65, catering to a global clientele that spans Europe, the Middle East, Japan, Taiwan, and Hong Kong. Sumec Ocean Transportation, beyond managing a significant portfolio of shipbuilding orders, prides itself on its strategic approach to maritime logistics and transportation solutions. This division of Sumec Group has effectively capitalized on its parent company’s vast industrial and technological base to deliver innovative shipping solutions that meet the evolving demands of global trade. With a keen focus on sustainability and efficiency, Sumec Ocean Transportation is not just expanding its fleet but is also steering towards eco-friendly maritime practices, aligning with global efforts to reduce the shipping industry’s carbon footprint. Through a blend of traditional shipbuilding excellence and a forward-looking approach to maritime transport, Sumec Ocean Transportation is setting a precedent in the industry, fostering growth, and promoting environmental stewardship. 5-April-2024


The Chinese shipbuilding company New Dayang has recently clinched new contracts for ultramax bulk carrier constructions from China Construction Bank (CCB) Financial Leasing. These contracts include two guaranteed ultramax bulk carriers based on the advanced Crown 63 Plus design, which are expected to be delivered and subsequently operated by Bohai Shipping (Hebei) starting in the latter part of 2026. Additionally, the Sumec Group—a major state-owned enterprise in the machinery manufacturing sector headquartered in Jiangsu and the entity behind New Dayang Shipbuilding since 2018—has extended a letter of intent with Bohai Shipping to construct two more ultramax bulk carriers of the same model. This extension reinforces the company’s growing order book, which now stands at 63 vessels, with the production timeline extending through to the fourth quarter of 2027. Sumec Ocean Transportation, with its base in Singapore, operates as the umbrella organization for New Dayang Shipbuilding. A key player in the maritime logistics and shipbuilding industry, Sumec Ocean Transportation specializes in offering a broad spectrum of shipping solutions, ranging from the construction of new vessels to shipping management services. It is an integral part of the Sumec Group, contributing significantly to the group’s diversification and global reach in the maritime sector. The company’s strategic focus on innovation and sustainability positions it well within the competitive shipbuilding market, especially in the development and operation of environmentally friendly vessels such as the ultramax bulk carriers. This focus aligns with the industry’s shift towards reducing carbon footprints and enhancing operational efficiencies, making Sumec Ocean Transportation a pivotal force in advancing maritime transportation’s green transition. 23-March-2024


Singapore-based Sumec Ocean Transportation, which is the parent company of Chinese shipyard New Dayang Shipbuilding, is planning to become like Japan’s trading house ship builder-owners. Sumec Ocean Transportation plots course as a new model of Chinese shipowner. Hence, Sumec Ocean Transportation has rapidly increased its fleet and operations. According to Sumec Ocean Transportation’s Managing Director Yang Lei, Sumec Ocean Transportation is planning to become the most reliable tonnage supplier of the shipping industry. Sumec Ocean Transportation’s new time-charter based operations commenced on 1 April 2019. Sumec Ocean Transportation’s parent company is a trader Sumec Group Corporation, which is directly affiliated with state-owned China National Machinery Industry (Sinomach). In 2018, Sumec Ocean Transportation became a sister company of Chinese shipyard New Dayang Shipbuilding. Sumec Ocean Transportation is aiming to become a Chinese answer to Japan’s Imabari Shipbuilding or Tsuneishi Shipbuilding, which has its Kambara Kisen shipowning branch. According to Sumec Ocean Transportation’s Managing Director Yang Lei, Sumec Group Corporation’s strong balance sheet gives the whole group access to better financing. Sumec Group Corporation’s aim is to exploit this advantage to pursue synergies between shipping, shipbuilding, manufacturing, and trading within the group. Sumec Group Corporation has grown from a trader with passive exposure to shipping into a shipbuilder and now operating owner via parent company Sumec Ocean Transportation. Sumec Group Corporation has a long history of financial involvement with the Chinese shipbuilding industry, dating back to 1986 when Sumec Group Corporation began providing refund guarantees to shipyards it served as an equipment supplier. Sumec Group Corporation held equity stakes in several yards, including the former Jiangsu Eastern, which was known for a time as Jingjiang Sumec Shipyard. In 2016, principal creditor Sumec Group Corporation was eyeing a stake in then-troubled New Dayang. Sumec Ocean Transportation’s Managing Director Yang Lei was previously working three years with Oldendorff Carriers in Shanghai and Singapore and then seven with Cargill Ocean Transportation in Singapore. Oldendorff Carriers and Cargill Ocean Transportation are now Sumec Ocean Transportation’s time-charter customers. Cargill Ocean Transportation chartered in six (6) kamsarmax and ultramax bulk carriers from Sumec Ocean Transportation. Sumec Ocean Transportation has been working with New York-listed blue-chip companies, but also wants China’s financial leasing houses. Sumec Ocean Transportation has been existing as a shipowner since 2010. However, Sumec Ocean Transportation has only acted as a passive asset investor until 2019. Sumec Ocean Transporation’s parent company Sumec Marine is the main shareholder in New Dayang Shipbuilding, Yangzhou, China. Sumec Group acquired New Dayang Shipbuilding and formally opened it in November 2018. Currently, New Dayang Shipbuilding controls 42 vessels, 30 vessels on the oceans, and 12 new-buildings under construction. Sumec Group owns 25 of these outright and has 17 bareboat chartered-in from financial owners China Development Bank Financial Leasing (CDB Leasing) and AVIC International Leasing. Sumec Ocean Transportation’s Managing Director Yang Lei plans to grow over time and also to expand beyond dry cargo. MD Yang Lei hopes to build the fleet up to 70 ships in 8 years. Sumec Ocean Transportation’s plan is to exploit New Dayang Shipbuilding’s strength as one of the most efficient shipbuilders of medium-sized ships. New Dayang Shipbuilding is able to construct four (4) kamsarmax bulk carriers simultaneously and that means New Dayang Shipbuilding could also build four (4) MR2 tankers simultaneously. Sumec Ocean Transportation could place orders on New Dayang Shipbuilding, but currently the problem with the MR2 market is that charter rates will not support the current newbuilding prices. Currently, Sumec Ocean Transportation is chartering out ships on period charters of one to three years and has no ships trading on spot right now. Sumec Ocean Transportation’s target business model is to place ships on time charters of five (5) years. Sumec Ocean Transportation has three (3) kamsarmax and nine (9) ultramax bulk carriers set for delivery soon. 24-September-2019


Sumec Marine, a prominent Chinese trading firm, owns New Dayang Shipbuilding (previously Yangzhou Dayang Shipbuilding) and has established Sumec Ocean Transportation in Singapore to oversee its maritime operations. Scheduled to start its operations in May 2019, Sumec Ocean Transportation will be responsible for the management of all dry bulk carriers owned by Sumec Marine. This Singapore-based ship operating entity will take control of 18 dry bulk carriers from Sumec Shipping, which is the shipowning branch of Sumec Marine, encompassing a range from handysize to kamsarmax bulk carriers. An affiliate of the state-owned China National Machinery Industry Corp (Sinomach), Sumec Ocean Transportation was created to enhance Sumec’s global maritime operations from Singapore, a strategic hub in international shipping. In addition to managing its fleet, Sumec Ocean Transportation will oversee the operations of three vessels chartered in, signifying its broad operational scope. With over two decades in the shipping sector, Nanjing-headquartered Sumec Marine offers extensive services to shipowners, including tailored shipbuilding, financial arrangements, ship modification, and marine engineering solutions. The acquisition of New Dayang Shipbuilding in Jiangsu province is a testament to Sumec Marine’s commitment to the shipbuilding industry, marking a significant expansion with an investment of $280 million alongside two affiliates to secure full ownership of Yangzhou Dayang. Following the acquisition, New Dayang Shipbuilding welcomed AVIC International Leasing as one of its first clients post-takeover, securing a contract for eight 63K DWT ultramax bulk carriers slated for delivery by the end of 2020. Additionally, the shipyard received orders for up to twelve 82K DWT kamsarmax bulk carriers from China Development Bank Financial Leasing, demonstrating a solid order book exceeding 20 bulk carrier newbuildings. Amidst maintaining its focus on constructing bulk carriers, New Dayang Shipbuilding is also poised to venture into the gas transport market, planning to build LPG and ethane carriers. This strategic direction aligns with Sumec Ocean Transportation’s ambitions to not only oversee a significant dry bulk fleet but also to expand its operational reach into new segments of maritime transport, reinforcing Sumec’s position in the global shipping industry. Sumec Ocean Transportation, through its strategic initiatives and comprehensive fleet management, aims to enhance Sumec’s maritime logistics and shipping operations, leveraging Singapore’s strategic position to foster growth and innovation in the shipping sector. 28-March-2018