New Chinese capesize venture launches West Africa service
Shunyu Shipping, a new Chinese capesize specialist, has launched China–West Africa operations, with its inaugural vessel delivering equipment to Guinea and plans to expand its fleet and trade volume rapidly
However, partner SD Mining has suspended operations in Guinea’s Axis area, raising questions about the potential impact on Shunyu’s shipping business
SHUNYU Shipping, a newly established Chinese firm focused on capesize bulk shipping, has made its debut on the China-West Africa trade.
The company, a joint venture between state-owned Xiamen Xiangyu Group and SD Mining, has seen its inaugural vessel, a 180,000 dwt dry bulker, arrived at Boffa, Guinea in late May.
It delivered China-manufactured engineering equipment and vehicles from Qingdao to Boffa anchorage in just 32 days, five days faster than traditional intermodal routes.
Shunyu Shipping will deploy capesize bulk carriers to move bauxite and iron ore from Guinea to China, and transport engineering equipment and machinery from China to West Africa to meet rising infrastructure demand.
Industry sources said Shunyu plans to complete 40 voyages in 2025, moving over 6m tonnes of cargo, and aims to expand its fleet to 10 capesize bulkers within three years.
The company has already signed long-term shipping agreements with mining companies in Guinea and Sierra Leone.
Operating a self-owned capesize fleet is expected to reduce transportation costs by $12–$15 per tonne compared to chartering, with annual savings projected to exceed $80m, according to Beijing shipbroker Xia Xiaowen.
As a founding partner of the joint venture, SD Mining has developed an annual mining capacity exceeding 12m tonnes in Guinea, accounting for 15% of China’s bauxite imports from the African country.
In 2024, SD Mining ranked as Guinea’s ninth-largest bauxite exporter, shipping over 19.7m tonnes, according to China’s Ministry of Commerce.
Driven by rising aluminium production in China, bauxite shipments from West Africa have surged, increasing the demand for capesize vessels. A recent report by Signal Ocean highlights that West African ports, especially those in Guinea, are major beneficiaries of this trend.
However, on June 1, SD Mining announced the suspension of all its mining, production, transport, and construction operations in Guinea’s Axis area.
The company has been approached for comments on whether this will impact Shunyu’s shipping business.
