Ultramax bulkcarriers of around 60-65,000 dwt have become increasingly popular in recent years, largely replacing the slightly smaller Supramax design in contracting activity, offering a larger cargo capacity and greater fuel efficiency.

In 2013, overall newbuilding interest in the bulker sector increased notably, and in total some 319 Ultramaxes were ordered. This was up 420% y-o-y, and accounted for almost one third of all bulker contracts placed globally.

New Favourite For Chinese Builders
The surge in demand for Ultramax newbuildings proved beneficial for Chinese yards, since almost 80% of Ultramax contracts were placed with Chinese builders. Ultramax vessels accounted for 40% of all bulkcarrier orders placed at Chinese yards in 2013, compared to 19% in 2012. Overall, nearly one in every four vessels ordered at a Chinese yard last year was an Ultramax, totalling 255 vessels of 16.2m dwt and 2.7m CGT.

China’s Twin Stars
As shown on the Graph of the Month, the vast majority of Ultramax orders placed at Chinese yards were for the ‘Dolphin 64’ and ‘Crown 63’ designs, which together accounted for 67% of contracts placed in 2013 (up from 30% in 2010). The ‘Crown 63’ design was the first Chinese Ultramax design to be developed (by Sinopacific Shipbuilding Group in late 2009), but it is only used by yards in the Sinopacific Group, and as such only two yards account for the 40 ‘Crown 63’ Ultramaxes currently on order in China.

According to Sinopacific, the design is 9% larger in terms of dwt than the group’s Supramax design, and reportedly consumes 13% less fuel when operating at the same speed.

Meanwhile, the ‘Dolphin 64’ design was developed by the Shanghai Design And Research Institute (SDARI), and was first ordered in 2010. The ‘Dolphin 64’ design has proved more popular than the ’Crown 63’, and there are currently 209 vessels of this design on order at seventeen Chinese yards.

Made in China
Smaller numbers of Ultramax vessels of foreign design, mainly Japanese, have also been placed at Chinese yards, including the ‘IS I-Star’ designed by Imabari S.B. and the ‘OS-Max 60 BC’ by Oshima S.B. However, foreign designs accounted for just 20% of Ultramax contracts placed at Chinese yards in 2013.

The success of China’s domestic Ultramax designs has helped Chinese yards to build their own brands and secure more orders. Largely as a result of the strong demand for Chinese-built Ultramaxes, Chinese builders took 63% of global bulkcarrier orders in 2013, up from 56% in 2010-12.

While Chinese yards secured more than half of Supramax contracts placed globally between 2007 and 2013, they have accounted for an even greater proportion of Ultramax orders, due in large part to the success of the two major Chinese designs.

So far in 2014, Ultramax vessels have remained popular, with Chinese yards taking almost 90% of the 80 Ultramax orders placed globally in the first quarter of the year. Continued strong newbuilding interest in the sector thus looks set to provide further support for both Chinese yards and the prominence of domestic designs.

(Source: Clarksons)