Vale planning of 20 VLOCs of 400,000 dwt to the world fleet is just what the market does not need, Pareto Securities says. Analysts at the Norwegian finance house calculate the vessels to be booked by Cosco and China Merchants will add 2% to 2017 capesize fleet growth.
Cosco and China Merchants have since confirmed the separate deals but have yet to nominate shipyards. Dalian Shipbuilding, Shanghai Waigaoqiao Shipbuilding (SWS), Guangzhou Shipyard International are the most likely candidates to build the vessels.
Vale has been losing $7 per ton on iron ore shipments given China’s resistance to the initial Valemax fleet and an easing of tensions with Beijing will allow the miner to potential reclaim ground lost to rivals.
Capesize bulk carrier market, the effects will be that the Newcastlemax bulk carriers currently being employed on the South East Asia to China trades will be left redundant by direct access by the Valemaxes serving China directly from Brazil. The capesize fleet reach 334.2 million dwt by the start of 2017.
Dry Bulk Shipping News - Shipbroker Notes