New guidelines issued by China’s Ministry of Transport on the berthing of 400,000 dwt bulk carriers.
A report by MLV & Co analyst Natasha Boyden said: “Interestingly, we note that in early October, the first Valemax iron ore carrier was allowed to dock at a Chinese port, indicating the end of the ban for such 400,000 dwt vessels to carry iron ore into China.
“We suggest this is a significant development for the dry bulk sector as it will potentially create additional capacity in the capesize segment, in addition to reducing tonne-miles for smaller vessels; these were previously used to transfer cargo from the valemaxes, which were docking in the Philippines and onto smaller vessels, which then transported the cargoes to China.”
Cosco and China Merchants Energy Shipping are set to order 10 valemax VLOCs each for 25 year long contracts of affreightment (COAs) with Vale. This would bring the fleet of valemaxes to 54 vessels.
John D’Ancona director of dry analysts for Clarksons saw the impact muted at least initially. Speaking at Mare Forum Singapore last week he said that many were replacements for VLCCs converted to VLOCs that were coming towards the end of their trading life.
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