Saturday, 24 Mar 2012
Returns for Capesize ships that haul commodities including iron ore and coal plunged to the lowest in 12 months as Chinese steel production slows and raw material prices fall.
According to the Baltic Exchange, a London based provider of freight costs on 29 dry bulk routes, daily returns for Capesize vessels fell to USD 4,881 on March 20th 2101. That’s the lowest price since March 2 last year.
Oslo based investment bank RS Platou Markets AS said that “A full blown recovery to match our yearly average target of USD 13,000 a day remains an uphill battle.”
Capesizes are the largest vessels in the Baltic Dry Index, a broader measure of costs to transport commodities. The gauge advanced for a 19th session, the longest winning streak since it rose for 23 days in June 2009. The index rose 0.6% to 884 as charter rates for three of the smaller ship classes tracked increased, figures from the exchange showed.
Panamaxes, the biggest ships that can navigate the Panama Canal, advanced 1.4% to USD 8,037, the longest winning streak in five months, according to the exchange. Supramaxes, about 25% smaller, added 2.7% to USD 10,340. Handysizes, the smallest ships in the index, rose 1.7% to USD 7,915, the highest rate in more than nine weeks.
Source - Bloomberg
Showing posts with label iron ore carriers. Show all posts
Showing posts with label iron ore carriers. Show all posts
Sunday, March 25, 2012
Thursday, February 16, 2012
Talks on mega-carrier access open in Brazil
Thursday, 16 February 2012
China and Brazil are negotiating access to Chinese ports for the fleet of giant vessels owned by the miner Vale SA. The talks come as a result of China's tightened regulations on large carriers and signal that the issue has intensified at the political level. During a meeting in the Brazilian capital, Brasilia, the country's Vice-President Michel Temer discussed the issue of access for Vale's Valemax vessels - the world's biggest dry-bulk carriers - with China's Vice-Premier Wang Qishan, according to Marco Aurelio Garcia, foreign policy adviser to Brazilian President Dilma Rousseff.
"It will be dealt with at a political level," Garcia was quoted as saying, according to a report by Bloomberg.
On Jan 31, the Chinese Ministry of Transport tightened port regulations, a move that has effectively prevented Vale's mega-vessels from docking at ports in the country.The ministry said its decision to bar giant ships was taken because of "maritime safety issues". Vale's Valemax vessels are designed to carry 400,000 metric tons of iron ore and are "too large for Chinese ports to accommodate", said Sun Guangqin, director of the Port and Shipping Institute at Dalian Maritime University.
"To tighten the regulations on giant vessels is necessary for the safe operation of ports and shipping routes," Sun said in a recent interview. Analysts said the trade in iron ore between the two emerging economies is also a factor. In 2009, China replaced the United States as Brazil's largest trading partner. The total trade volume between the two countries jumped 16 percent to $77.1 billion last year. Iron ore, one of the South American country's main export commodities, plays an important role in Sino-Brazilian trade.
China, the largest consumer of iron ore, imported 686 million tons of the material in 2011, an increase of 10.9 percent from the previous year, according to data from Chinese General Administration of Customs.
Miners such as Vale might attain monopolies on the transportation of iron ore by setting up their own fleets, Zhang Shouguo, executive vice-president of the China Shipowners' Association, said.
"It (the monopoly) will hurt China's shipping industry as well as the steel industry," said Zhang.
Vale has invested $2.3 billion in 19 of the 400,000-ton giant bulk carriers and will control another 16 under long-term contracts, according to the company.Scheduled for delivery by the end of 2013, the vessels will reduce freight costs from Brazil to China by between 20 and 25 percent and will significantly reduce carbon emissions compared with other vessels, Vale said.
The miner currently operates five Valemax vessels, but none has reached a Chinese port since being put into service in May.In the meantime, Vale managed to unload its 388,000-ton Berge Everest at Dalian port on Dec 28, prompting protests from domestic shipping companies and the China Shipowners' Association.
Source: China Daily
China and Brazil are negotiating access to Chinese ports for the fleet of giant vessels owned by the miner Vale SA. The talks come as a result of China's tightened regulations on large carriers and signal that the issue has intensified at the political level. During a meeting in the Brazilian capital, Brasilia, the country's Vice-President Michel Temer discussed the issue of access for Vale's Valemax vessels - the world's biggest dry-bulk carriers - with China's Vice-Premier Wang Qishan, according to Marco Aurelio Garcia, foreign policy adviser to Brazilian President Dilma Rousseff.
"It will be dealt with at a political level," Garcia was quoted as saying, according to a report by Bloomberg.
On Jan 31, the Chinese Ministry of Transport tightened port regulations, a move that has effectively prevented Vale's mega-vessels from docking at ports in the country.The ministry said its decision to bar giant ships was taken because of "maritime safety issues". Vale's Valemax vessels are designed to carry 400,000 metric tons of iron ore and are "too large for Chinese ports to accommodate", said Sun Guangqin, director of the Port and Shipping Institute at Dalian Maritime University.
"To tighten the regulations on giant vessels is necessary for the safe operation of ports and shipping routes," Sun said in a recent interview. Analysts said the trade in iron ore between the two emerging economies is also a factor. In 2009, China replaced the United States as Brazil's largest trading partner. The total trade volume between the two countries jumped 16 percent to $77.1 billion last year. Iron ore, one of the South American country's main export commodities, plays an important role in Sino-Brazilian trade.
China, the largest consumer of iron ore, imported 686 million tons of the material in 2011, an increase of 10.9 percent from the previous year, according to data from Chinese General Administration of Customs.
Miners such as Vale might attain monopolies on the transportation of iron ore by setting up their own fleets, Zhang Shouguo, executive vice-president of the China Shipowners' Association, said.
"It (the monopoly) will hurt China's shipping industry as well as the steel industry," said Zhang.
Vale has invested $2.3 billion in 19 of the 400,000-ton giant bulk carriers and will control another 16 under long-term contracts, according to the company.Scheduled for delivery by the end of 2013, the vessels will reduce freight costs from Brazil to China by between 20 and 25 percent and will significantly reduce carbon emissions compared with other vessels, Vale said.
The miner currently operates five Valemax vessels, but none has reached a Chinese port since being put into service in May.In the meantime, Vale managed to unload its 388,000-ton Berge Everest at Dalian port on Dec 28, prompting protests from domestic shipping companies and the China Shipowners' Association.
Source: China Daily
Wednesday, February 8, 2012
Brazil government would help Vale vessels to operate in China
Wednesday, 08 Feb 2012
Mines and Energy Minister Edison Lobao said that Brazil government is ready to help Vale SA in the negotiations with the Chinese government for its large vessels, which are able to carry about 400,000 metric tonnes of iron ore, to operate in the Asian country.
Mr Lobao told reporters in Brasilia that Vale hasn’t asked for the government’s help in the issue.
(Sourced from Bloomberg)
Mines and Energy Minister Edison Lobao said that Brazil government is ready to help Vale SA in the negotiations with the Chinese government for its large vessels, which are able to carry about 400,000 metric tonnes of iron ore, to operate in the Asian country.
Mr Lobao told reporters in Brasilia that Vale hasn’t asked for the government’s help in the issue.
(Sourced from Bloomberg)
Vale iron ore ships face elevated cancellation risk - HSBC
Wednesday, 08 Feb 2012
HSBC Shipping Services Ltd said that there’s an elevated risk that Vale SA, the Brazilian mining company amassing a fleet of 35 of the world’s largest iron ore carriers, may cancel some of the contracts.
The vessels, each able to hold as much as 400,000 metric tonnes of ore, are excluded from China by port entry requirements for very large vessels that were tightened last week. The rules apply to dry bulk vessels larger than 350,000 deadweight tonnes, the China Shipowners Association said. Vale, the world’s largest ore producer, says it’s operating six vessels above that size, of which it owns four and charters two.
Vale remained committed to the construction of the remaining 29 ships, the Rio de Janeiro based company said last week, as part of plans to spend USD 8.1 billion on new ships and take greater control over freight costs from Brazil to China, its fastest growing market in Asia.
HSBC said in the report that “The shipbuilding program might look like an expensive mistake, but it is potentially even worse than that if they are banned from entering China. Six have already entered service and some of the remainder must now be at elevated risk of cancellation.”
None of the existing Vale owned ore carriers have been permitted to call at Chinese ports. The Berge Everest, owned by BW Group Ltd. and under a long-term contract to Vale, called at Dalian in December. Chinese shipowners opposed the vessels’ introduction on concern it would worsen a capacity glut and plunging rates. China is the biggest global user of iron ore, a steelmaking ingredient.
(Sourced from Bloomberg)
HSBC Shipping Services Ltd said that there’s an elevated risk that Vale SA, the Brazilian mining company amassing a fleet of 35 of the world’s largest iron ore carriers, may cancel some of the contracts.
The vessels, each able to hold as much as 400,000 metric tonnes of ore, are excluded from China by port entry requirements for very large vessels that were tightened last week. The rules apply to dry bulk vessels larger than 350,000 deadweight tonnes, the China Shipowners Association said. Vale, the world’s largest ore producer, says it’s operating six vessels above that size, of which it owns four and charters two.
Vale remained committed to the construction of the remaining 29 ships, the Rio de Janeiro based company said last week, as part of plans to spend USD 8.1 billion on new ships and take greater control over freight costs from Brazil to China, its fastest growing market in Asia.
HSBC said in the report that “The shipbuilding program might look like an expensive mistake, but it is potentially even worse than that if they are banned from entering China. Six have already entered service and some of the remainder must now be at elevated risk of cancellation.”
None of the existing Vale owned ore carriers have been permitted to call at Chinese ports. The Berge Everest, owned by BW Group Ltd. and under a long-term contract to Vale, called at Dalian in December. Chinese shipowners opposed the vessels’ introduction on concern it would worsen a capacity glut and plunging rates. China is the biggest global user of iron ore, a steelmaking ingredient.
(Sourced from Bloomberg)
Monday, February 6, 2012
Vale-China standoff over mega iron ore ships deepens
Monday, 06 February 2012
Beijing has effectively barred mega iron ore ships owned by Brazilian miner Vale SA, stepping up protection of the domestic shipping industry and control over imports of the key steelmaking ingredient.
China's Ministry of Transport on Tuesday, citing a downturn in the shipping industry, banned giant dry bulk vessels and oil tankers with immediate effect. It did not specifically mention Vale in the new regulation, which affects all large vessels including the fleet of 400,000 deadweight tonne vessels called Valemaxes.The statement comes just a month after Vale managed to unload iron ore from its 388,000-tonne vessel Berge Everest at Dalian port. The shipment swiftly drew an outcry from the influential China Shipowners Association, which has been actively lobbying Beijing to ban Vale's giant carriers.
The Shipowners Association and powerful steelmakers have said that Vale's fleet of giant carriers could be a "Trojan horse", which would allow the miner to monopolize the shipping and the iron ore markets in the world's largest importer of the raw material by sending supplies cheaper than could rivals such as Australia's Rio Tinto and BHP Billiton ."At the end of the day, they (China) want to support their own. They are not interested in whether Vale will be able to provide cheap imports in comparison to Australian imports," said George Lazardis, an analyst at Greek broker Intermodal.
"They are interested in giving support to their shipowners, which are starting to become a significant force over the past couple of years, and to help that part of the industry grow."At present, no Chinese ports have regulatory approval to receive dry bulk carriers of more than 300,000 tonnes, and industry sources have said Berge Everest's entry to Dalian's Port was probably a bureaucratic fluke.
Chinese financial magazine Caixin said on Tuesday that Vale had apparently got around the regulation in December by using the Berge Everest, a carrier owned by a Singapore company and leased back to the Brazilian miner, to deliver ore. Chinese maritime regulations require shipowners, or representatives, to cooperate with customs when applying for special entry permits.The transport ministry said its decision to bar the mega ships was also in part linked to maritime safety issues.
COSTLIER OPTIONS
With Beijing keeping its ports closed to Valemaxes, the Rio de Janeiro-based miner will have to rely on a costlier trans-shipment hub in the Philippines to ensure its mega ships, each costing around $110 million, remained employed. Vale is already building an Asian distribution center in Malaysia that will be able to stock 60 million metric tons, about a fifth of the firm's annual output of 300 million tonnes, starting in 2014.
The world's largest dry bulk floating storage vessel, Ore Fabrica, owned by Vale, has docked in the Philippines' Subic Bay Freeport, a spokeswoman for the port told Reuters on Tuesday.
The 280,000 deadweight tonne vessel will serve as a platform to transfer iron ore from the so-called Valemaxes to smaller ships for transport to China and other Asian markets such as Japan and South Korea.
BAD INVESTMENT
Vale inked a contract with Rongsheng Shipbuilding and Heavy Industries of China in 2008 to build 12 carries valued at $1.6 billion and is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete.
But China's latest snub shows Vale may have made a bad and costly investment in one of the most talked-about shipbuilding ventures of this decade.The episode also highlights the difficulties foreign firms face when doing businesses in China, where many senior executives are closely intertwined with the Chinese government and can wield immense power in influencing policy decisions.
China Shipowners Association Executive Vice-President Zhang Shouguo is also a former deputy director of the water transport division of the Ministry of Transport.With the government owning a raft of companies, what would be commercial information in a capitalist countries could also become a state secret in China.Rio Tinto's iron ore negotiations manager, Stern Hu, was arrested and charged in 2009 for stealing state secrets and sentenced to 10 years in jail.
Source: Reuters
Beijing has effectively barred mega iron ore ships owned by Brazilian miner Vale SA, stepping up protection of the domestic shipping industry and control over imports of the key steelmaking ingredient.
China's Ministry of Transport on Tuesday, citing a downturn in the shipping industry, banned giant dry bulk vessels and oil tankers with immediate effect. It did not specifically mention Vale in the new regulation, which affects all large vessels including the fleet of 400,000 deadweight tonne vessels called Valemaxes.The statement comes just a month after Vale managed to unload iron ore from its 388,000-tonne vessel Berge Everest at Dalian port. The shipment swiftly drew an outcry from the influential China Shipowners Association, which has been actively lobbying Beijing to ban Vale's giant carriers.
The Shipowners Association and powerful steelmakers have said that Vale's fleet of giant carriers could be a "Trojan horse", which would allow the miner to monopolize the shipping and the iron ore markets in the world's largest importer of the raw material by sending supplies cheaper than could rivals such as Australia's Rio Tinto and BHP Billiton ."At the end of the day, they (China) want to support their own. They are not interested in whether Vale will be able to provide cheap imports in comparison to Australian imports," said George Lazardis, an analyst at Greek broker Intermodal.
"They are interested in giving support to their shipowners, which are starting to become a significant force over the past couple of years, and to help that part of the industry grow."At present, no Chinese ports have regulatory approval to receive dry bulk carriers of more than 300,000 tonnes, and industry sources have said Berge Everest's entry to Dalian's Port was probably a bureaucratic fluke.
Chinese financial magazine Caixin said on Tuesday that Vale had apparently got around the regulation in December by using the Berge Everest, a carrier owned by a Singapore company and leased back to the Brazilian miner, to deliver ore. Chinese maritime regulations require shipowners, or representatives, to cooperate with customs when applying for special entry permits.The transport ministry said its decision to bar the mega ships was also in part linked to maritime safety issues.
COSTLIER OPTIONS
With Beijing keeping its ports closed to Valemaxes, the Rio de Janeiro-based miner will have to rely on a costlier trans-shipment hub in the Philippines to ensure its mega ships, each costing around $110 million, remained employed. Vale is already building an Asian distribution center in Malaysia that will be able to stock 60 million metric tons, about a fifth of the firm's annual output of 300 million tonnes, starting in 2014.
The world's largest dry bulk floating storage vessel, Ore Fabrica, owned by Vale, has docked in the Philippines' Subic Bay Freeport, a spokeswoman for the port told Reuters on Tuesday.
The 280,000 deadweight tonne vessel will serve as a platform to transfer iron ore from the so-called Valemaxes to smaller ships for transport to China and other Asian markets such as Japan and South Korea.
BAD INVESTMENT
Vale inked a contract with Rongsheng Shipbuilding and Heavy Industries of China in 2008 to build 12 carries valued at $1.6 billion and is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete.
But China's latest snub shows Vale may have made a bad and costly investment in one of the most talked-about shipbuilding ventures of this decade.The episode also highlights the difficulties foreign firms face when doing businesses in China, where many senior executives are closely intertwined with the Chinese government and can wield immense power in influencing policy decisions.
China Shipowners Association Executive Vice-President Zhang Shouguo is also a former deputy director of the water transport division of the Ministry of Transport.With the government owning a raft of companies, what would be commercial information in a capitalist countries could also become a state secret in China.Rio Tinto's iron ore negotiations manager, Stern Hu, was arrested and charged in 2009 for stealing state secrets and sentenced to 10 years in jail.
Source: Reuters
Tuesday, January 31, 2012
Vale readies iron ore transshipment hub in Philippines
Tue Jan 31, 2012
* Ore Fabrica arrives in Philippines' Subic Bay port
* Ship is the biggest dry bulk floating storage vessel
* Comes ahead of two Valemaxes due in February
SINGAPORE, Jan 31 (Reuters) - The world's largest dry bulk floating storage vessel, owned by Vale, has arrived in the Philippines as the Brazilian miner readies a base in the country to onship iron ore to top market China, port and shipping sources said on Tuesday.
Ore Fabrica, to be stationed in Subic Bay Freeport, is part of Vale's plan to make the Philippines a transshipment hub to overcome Chinese opposition to its new 400,000-tonne iron ore carriers, known as "Valemaxes".
The 280,000-deadweight-tonne Ore Fabrica will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets like China, Japan and South Korea.
"It was anchored yesterday. The vessel, which has a crane on it, will be used by Vale to transship iron ore from Valemaxes to two or three other ships," said a maritime source involved in the management of the vessel.
Previously a crude oil tanker, Ore Fabrica was converted by a Chinese shipyard to a floating storage vessel to be based in Subic Bay Freeport, located in the Philippines' main Luzon island, according to shipping data.
China, the world's largest iron ore importer, has yet to fully open its seaports to the giant Valemaxes after domestic ship owners strongly protested the arrival of the first and only vessel of the type into the country in late December.
Officials at Vale in Singapore were not immediately available for comment. A spokeswoman for Subic Bay Freeport said she was still checking with the company's seaport department.
Two Valemaxes are headed for Subic Bay port next month.
The 400,000-deadweight-tonne Vale Brasil is expected to arrive in Subic Bay Freeport on Feb. 12, shipping data showed. It wll be followed by the similar-sized Vale China on Feb. 22.
Apart from the Philippines, Vale is also setting up a transshipment centre in Malaysia.
The Brazilian miner in October broke ground for a $1.3 billion iron ore distribution centre in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.
Vale is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto .
The 388,000-tonne Berge Everest was the first and only Valemax allowed into China, docking at Dalian Port on Dec. 28 to unload iron ore that has yet to be sold.
The China Shipowners Association has helped keep further ships from arriving at its domestic ports. The group fears the fleet will give Vale a monopoly on both the shipping and iron ore markets at China's expense.
(sourced Reuters)
* Ore Fabrica arrives in Philippines' Subic Bay port
* Ship is the biggest dry bulk floating storage vessel
* Comes ahead of two Valemaxes due in February
SINGAPORE, Jan 31 (Reuters) - The world's largest dry bulk floating storage vessel, owned by Vale, has arrived in the Philippines as the Brazilian miner readies a base in the country to onship iron ore to top market China, port and shipping sources said on Tuesday.
Ore Fabrica, to be stationed in Subic Bay Freeport, is part of Vale's plan to make the Philippines a transshipment hub to overcome Chinese opposition to its new 400,000-tonne iron ore carriers, known as "Valemaxes".
The 280,000-deadweight-tonne Ore Fabrica will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets like China, Japan and South Korea.
"It was anchored yesterday. The vessel, which has a crane on it, will be used by Vale to transship iron ore from Valemaxes to two or three other ships," said a maritime source involved in the management of the vessel.
Previously a crude oil tanker, Ore Fabrica was converted by a Chinese shipyard to a floating storage vessel to be based in Subic Bay Freeport, located in the Philippines' main Luzon island, according to shipping data.
China, the world's largest iron ore importer, has yet to fully open its seaports to the giant Valemaxes after domestic ship owners strongly protested the arrival of the first and only vessel of the type into the country in late December.
Officials at Vale in Singapore were not immediately available for comment. A spokeswoman for Subic Bay Freeport said she was still checking with the company's seaport department.
Two Valemaxes are headed for Subic Bay port next month.
The 400,000-deadweight-tonne Vale Brasil is expected to arrive in Subic Bay Freeport on Feb. 12, shipping data showed. It wll be followed by the similar-sized Vale China on Feb. 22.
Apart from the Philippines, Vale is also setting up a transshipment centre in Malaysia.
The Brazilian miner in October broke ground for a $1.3 billion iron ore distribution centre in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.
Vale is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto .
The 388,000-tonne Berge Everest was the first and only Valemax allowed into China, docking at Dalian Port on Dec. 28 to unload iron ore that has yet to be sold.
The China Shipowners Association has helped keep further ships from arriving at its domestic ports. The group fears the fleet will give Vale a monopoly on both the shipping and iron ore markets at China's expense.
(sourced Reuters)
Sunday, January 22, 2012
Vale superships challenge rivals
Sunday, 22 Jan 2012
It is reported that with the docking of Vale first monster 400,000 tonne ore carrier in China, the Brazilian iron ore producer hopes to increase competitive pressure on BHP Billiton and Rio Tinto.
After much protest from Chinese steel mills and freighters, the first of its Valemax super-size ore carriers docked in the Chinese port of Dalian on December 28.
Industry analysts say it is the latest attempt by Vale to rein in its transport costs and expand its presence in the all-important Chinese market where BHP and Rio Tinto enjoy a significant cost advantage.
But the miner decision to run its own fleet of super ships instead of using charter vessels as it has in the past also has ramifications for global shipping, especially the charter companies that have benefited from soaring shipping costs during the decade-long iron ore boom.
Chinese ship owners had petitioned Chinese authorities to prevent the Valemax ships from docking and had succeeded until last month. China Ministry of Transport is still considering whether to allow further Valemax dockings.
UBS global commodity analyst Mr Thomas Price who said it might result in dry bulk freight rates dropping more than 10% in the next year said ''Vale's decision to build its own fleet of Valemax vessels has sent shock waves through the global shipping industry.”
Vale has described the move to the Valemax vessels as strategic.
Mr Jose Carlos Martins head of Vale iron ore division said ''The Australians are 10 days from China we are 45 days.”
But Australian mining industry sources played down the threat to BHP and Rio arguing that Western Australia 35 day advantage was still likely to trump any cost savings Vale gained.
(Sourced from www.theage.com.au)
It is reported that with the docking of Vale first monster 400,000 tonne ore carrier in China, the Brazilian iron ore producer hopes to increase competitive pressure on BHP Billiton and Rio Tinto.
After much protest from Chinese steel mills and freighters, the first of its Valemax super-size ore carriers docked in the Chinese port of Dalian on December 28.
Industry analysts say it is the latest attempt by Vale to rein in its transport costs and expand its presence in the all-important Chinese market where BHP and Rio Tinto enjoy a significant cost advantage.
But the miner decision to run its own fleet of super ships instead of using charter vessels as it has in the past also has ramifications for global shipping, especially the charter companies that have benefited from soaring shipping costs during the decade-long iron ore boom.
Chinese ship owners had petitioned Chinese authorities to prevent the Valemax ships from docking and had succeeded until last month. China Ministry of Transport is still considering whether to allow further Valemax dockings.
UBS global commodity analyst Mr Thomas Price who said it might result in dry bulk freight rates dropping more than 10% in the next year said ''Vale's decision to build its own fleet of Valemax vessels has sent shock waves through the global shipping industry.”
Vale has described the move to the Valemax vessels as strategic.
Mr Jose Carlos Martins head of Vale iron ore division said ''The Australians are 10 days from China we are 45 days.”
But Australian mining industry sources played down the threat to BHP and Rio arguing that Western Australia 35 day advantage was still likely to trump any cost savings Vale gained.
(Sourced from www.theage.com.au)
Wednesday, January 11, 2012
Iron ore shipping costs plunge 47pct amid China slowdown risks
Wednesday, 11 Jan 2012
Bloomberg reported that the cost of hauling iron ore and coal fell to a four-month low, extending this year decline to 47% amid concerns a Chinese economic slowdown will curb steel production, the biggest driver of global shipping demand.
According to the London based Baltic Exchange rates to hire a capesize ship, the largest in the fleet of dry-bulk vessels dropped 6.1% to USD 14,535 a day. That’s less than half the 2011 high of USD 32,889 reached on December 12.
Ms Natasha Boyden an analyst at New York-based Cantor Fitzgerald LP said “Concerns about a Chinese economic slowdown mean that there are real risks to weaker Chinese steel production growth in 2012 which the capesize sector is highly leveraged to.”
According to the exchange which publishes rates for more than 50 maritime routes the Baltic Dry Index a measure of charter costs for four classes of vessels declined 2.9% to 1,308 points. That the lowest level since August 15. The gauge has fallen 25% in 2012, as earnings for the other vessel types also declined while at a lower pace than capesizes.
Cantor Fitzgerald said a surge in new vessels being delivered from shipyards in January will entrench hire costs for the fleet of 1,335 capesize ships at current lows. Rainy weather in Australia and Brazil, the largest exporters of iron ore, also cut shipments amid falling demand ahead of the Chinese New Year shutdown later this month.
According to the most recent data from the World Steel Association China steel production has declined for six straight months falling to 49.8 million tonnes in November.
(Sourced from Bloomberg)
Bloomberg reported that the cost of hauling iron ore and coal fell to a four-month low, extending this year decline to 47% amid concerns a Chinese economic slowdown will curb steel production, the biggest driver of global shipping demand.
According to the London based Baltic Exchange rates to hire a capesize ship, the largest in the fleet of dry-bulk vessels dropped 6.1% to USD 14,535 a day. That’s less than half the 2011 high of USD 32,889 reached on December 12.
Ms Natasha Boyden an analyst at New York-based Cantor Fitzgerald LP said “Concerns about a Chinese economic slowdown mean that there are real risks to weaker Chinese steel production growth in 2012 which the capesize sector is highly leveraged to.”
According to the exchange which publishes rates for more than 50 maritime routes the Baltic Dry Index a measure of charter costs for four classes of vessels declined 2.9% to 1,308 points. That the lowest level since August 15. The gauge has fallen 25% in 2012, as earnings for the other vessel types also declined while at a lower pace than capesizes.
Cantor Fitzgerald said a surge in new vessels being delivered from shipyards in January will entrench hire costs for the fleet of 1,335 capesize ships at current lows. Rainy weather in Australia and Brazil, the largest exporters of iron ore, also cut shipments amid falling demand ahead of the Chinese New Year shutdown later this month.
According to the most recent data from the World Steel Association China steel production has declined for six straight months falling to 49.8 million tonnes in November.
(Sourced from Bloomberg)
Tuesday, January 3, 2012
Giant Vale ship completes maiden journey to China
Tue Jan 3, 2012
SINGAPORE Jan 3 (Reuters) - The first of Vale's giant dry bulk vessels to arrive in China has completed delivery of its iron ore cargo, shipping data showed on Tuesday, a key step forward in the Brazilian miner's plan to cut shipping costs to its biggest market.
Reuters Freightviews and independent shipping data confirmed the 388,000-tonne vessel, Berge Everest, had departed China's Port of Dalian over the weekend for Singapore, where it will likely refuel for its journey back to Brazil.
Draught measurements indicated the ship had unloaded all or nearly all of its iron ore cargo in Dalian.
Vale has ordered 35 of the world's largest dry bulk carriers, of which six are already on the water, at an estimated cost of $4.2 billion from Chinese and Korean shipyards.
The world's second largest miner had been trying since June 2011 to get Chinese authorities to allow the megaships to enter the country's ports.
Chinese port officials have declined to comment on the arrival of Berge Everest, leaving it unclear as to whether other giant Vale ships will be allowed to dock in the country's ports.
Five other giant ships operated by Vale, the world's top iron ore producer, were not expected to follow Berge Everest into China at least in the near term.
Shipping data showed two heading back to Brazil, two in Europe and one -- the Vale Beijing -- anchored off Brazil's Ponta da Madeira Port.
The Vale Beijing, the newest member of the "Valemax" fleet, developed cracks in its hull on its maiden voyage, sparking concerns from Chinese shipowners about the safety of these ships.
Chinese shipowners and steelmakers are strongly opposed to Vale's vessels, fearing the ships are a "Trojan Horse" that the miner will use to monopolize both the shipping and iron ore markets at China's expense.
Vale, which sells about 40 percent of its ore to China, is counting on Valemaxes to slash shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto . While Vale's ore is generally of higher quality, that advantage is cancelled by Australia's proximity to China, the world's top steelmaker and biggest ore importer.
(sourced Reuters)
SINGAPORE Jan 3 (Reuters) - The first of Vale's giant dry bulk vessels to arrive in China has completed delivery of its iron ore cargo, shipping data showed on Tuesday, a key step forward in the Brazilian miner's plan to cut shipping costs to its biggest market.
Reuters Freightviews and independent shipping data confirmed the 388,000-tonne vessel, Berge Everest, had departed China's Port of Dalian over the weekend for Singapore, where it will likely refuel for its journey back to Brazil.
Draught measurements indicated the ship had unloaded all or nearly all of its iron ore cargo in Dalian.
Vale has ordered 35 of the world's largest dry bulk carriers, of which six are already on the water, at an estimated cost of $4.2 billion from Chinese and Korean shipyards.
The world's second largest miner had been trying since June 2011 to get Chinese authorities to allow the megaships to enter the country's ports.
Chinese port officials have declined to comment on the arrival of Berge Everest, leaving it unclear as to whether other giant Vale ships will be allowed to dock in the country's ports.
Five other giant ships operated by Vale, the world's top iron ore producer, were not expected to follow Berge Everest into China at least in the near term.
Shipping data showed two heading back to Brazil, two in Europe and one -- the Vale Beijing -- anchored off Brazil's Ponta da Madeira Port.
The Vale Beijing, the newest member of the "Valemax" fleet, developed cracks in its hull on its maiden voyage, sparking concerns from Chinese shipowners about the safety of these ships.
Chinese shipowners and steelmakers are strongly opposed to Vale's vessels, fearing the ships are a "Trojan Horse" that the miner will use to monopolize both the shipping and iron ore markets at China's expense.
Vale, which sells about 40 percent of its ore to China, is counting on Valemaxes to slash shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto . While Vale's ore is generally of higher quality, that advantage is cancelled by Australia's proximity to China, the world's top steelmaker and biggest ore importer.
(sourced Reuters)
Friday, December 30, 2011
Mitsui OSK Lines orders new high efficiency Capesize iron ore carrier
Friday, 30 Dec 2011
Mitsui OSK Lines Ltd announced that it has ordered a new Capesize bulker that will adopt element technologies of the next generation ISHIN-III vessel program to achieve high fuel efficiency. Universal Shipbuilding Corporation will construct the new ship, slated for completion in late 2014.
MOL has repeatedly studied various technologies to realize the concept for the ISHIN-III series of next generation vessels announced in April 2010. The new vessel will adopt the following element technologies which are at the core of the ISHIN-III concept. New technologies will boost fuel efficiency of the new ship by more than 20% compared to conventional cape-size vessels with a corresponding reduction in CO2 emissions.
1. Waste heat energy recovery to assist propulsion
This concept seeks to maximize waste heat energy recovery with more advanced technology. A large amount of heat energy can be recovered from the large main engine’s exhaust gas, converted to electricity, and utilized to provide additional propulsion, significantly reducing the vessel’s environmental burden. This technology can also be applied to large main engines installed on tankers and containerships.
2. Reduction of CO2 emissions even at low speeds
The combination of a turbocharger that can operate at high efficiency even at low rpm and an electronically-controlled main engine reduces CO2 emissions even during a low-speed voyage.
MOL continues to take a proactive stance in technological development with the aim of reducing the environmental burden of its ships.
Mitsui OSK Lines Ltd announced that it has ordered a new Capesize bulker that will adopt element technologies of the next generation ISHIN-III vessel program to achieve high fuel efficiency. Universal Shipbuilding Corporation will construct the new ship, slated for completion in late 2014.
MOL has repeatedly studied various technologies to realize the concept for the ISHIN-III series of next generation vessels announced in April 2010. The new vessel will adopt the following element technologies which are at the core of the ISHIN-III concept. New technologies will boost fuel efficiency of the new ship by more than 20% compared to conventional cape-size vessels with a corresponding reduction in CO2 emissions.
1. Waste heat energy recovery to assist propulsion
This concept seeks to maximize waste heat energy recovery with more advanced technology. A large amount of heat energy can be recovered from the large main engine’s exhaust gas, converted to electricity, and utilized to provide additional propulsion, significantly reducing the vessel’s environmental burden. This technology can also be applied to large main engines installed on tankers and containerships.
2. Reduction of CO2 emissions even at low speeds
The combination of a turbocharger that can operate at high efficiency even at low rpm and an electronically-controlled main engine reduces CO2 emissions even during a low-speed voyage.
MOL continues to take a proactive stance in technological development with the aim of reducing the environmental burden of its ships.
Thursday, December 22, 2011
Vale looking to sell Valemax iron ore carriers - Report
Thursday, 22 Dec 2011
Vale is looking to sell off its large iron ore carriers amid fierce opposition from Chinese ship owners and embarrassing teething problems as the second largest mining company shifts its focus back to core projects.
Mr José Carlos Martins Vale executive director for iron ore and strategy said that the Brazilian company would sell its so called Valemax most of which have not yet been built, if it could take long term leases on them.
The multi billion dollar plan to control shipments to China by building 35 ships with decks the size of three football fields the biggest dry bulk carriers ever was dreamt up by Mr Roger Agnelli, Vale former headstrong chief executive but it has faced heavy criticism since.
None of the new carriers has been able to dock in China, Vale biggest market, because of opposition from local Shipowners and technical difficulties while a mysterious leak aboard the Vale Beijing on its maiden voyage this month has raised safety concerns.
The move to sell the ships also comes as Mr Murilo Ferreira Vale new more cautious and diplomatic chief executive is reviewing spending on all projects to help strengthen the company finances in the face of falling commodity prices.
Mr Martins said “It’s really all about capital allocation. We prefer to invest our capital in mining and contract the ships instead, declining to comment on whether negotiations were already under way. There is no reason we actually have to own them.”
Vale began placing orders in 2008 for the 35 Valemax of which it planned to own 19 in an attempt to control the price it paid to move its iron ore to China after years of wild gyrations in charter prices. Rates per day for capsize ships the largest dry bulk carriers reached as high as USD 233,988 per day in June 2008 but subsequently plummeted by December that year to as low as USD 2,400.
(Sourced from www.ft.com)
Vale is looking to sell off its large iron ore carriers amid fierce opposition from Chinese ship owners and embarrassing teething problems as the second largest mining company shifts its focus back to core projects.
Mr José Carlos Martins Vale executive director for iron ore and strategy said that the Brazilian company would sell its so called Valemax most of which have not yet been built, if it could take long term leases on them.
The multi billion dollar plan to control shipments to China by building 35 ships with decks the size of three football fields the biggest dry bulk carriers ever was dreamt up by Mr Roger Agnelli, Vale former headstrong chief executive but it has faced heavy criticism since.
None of the new carriers has been able to dock in China, Vale biggest market, because of opposition from local Shipowners and technical difficulties while a mysterious leak aboard the Vale Beijing on its maiden voyage this month has raised safety concerns.
The move to sell the ships also comes as Mr Murilo Ferreira Vale new more cautious and diplomatic chief executive is reviewing spending on all projects to help strengthen the company finances in the face of falling commodity prices.
Mr Martins said “It’s really all about capital allocation. We prefer to invest our capital in mining and contract the ships instead, declining to comment on whether negotiations were already under way. There is no reason we actually have to own them.”
Vale began placing orders in 2008 for the 35 Valemax of which it planned to own 19 in an attempt to control the price it paid to move its iron ore to China after years of wild gyrations in charter prices. Rates per day for capsize ships the largest dry bulk carriers reached as high as USD 233,988 per day in June 2008 but subsequently plummeted by December that year to as low as USD 2,400.
(Sourced from www.ft.com)
Tuesday, December 13, 2011
China shipowners assn raise safety concerns over Vale's mega ships
Tue Dec 13, 2011
SHANGHAI Dec 13 (Reuters) - Chinese shipowners association urged its government to carefully review the safety of Vale's new mega iron ore carriers before allowing them access to domestic ports, the gateway to the Brazilian firm's main market.
China Shipowners' Association said the 400,000-tonne Valemaxes, the world's largest dry bulk ships, have not been thoroughly tested and could pose a safety threat.
The industry group's comments come a week after a leak was found on the Vale Beijing while it was preparing to set sail on its maiden voyage.
"Such mega ships have been newly built ... and it is not yet certain whether they can withstand various sea conditions," the group said in an email to Reuters.
"If there is any leaking of fuel oil, the pollution will be catastrophic."
The Vale Beijing is one of the first of 35 huge bulk carriers commissioned by Vale, which is betting on the ships to slash shipping costs so it can better compete with Australian rivals BHP Billiton and Rio Tinto.
China, however, hasn't opened up its ports to the ships.
Influential Chinese shipowners are lobbying the government to keep the vessels out of the country's ports, fearing Vale will use the fleet to monopolise the dry bulk shipping market at their expense.
(sourced Reuters)
SHANGHAI Dec 13 (Reuters) - Chinese shipowners association urged its government to carefully review the safety of Vale's new mega iron ore carriers before allowing them access to domestic ports, the gateway to the Brazilian firm's main market.
China Shipowners' Association said the 400,000-tonne Valemaxes, the world's largest dry bulk ships, have not been thoroughly tested and could pose a safety threat.
The industry group's comments come a week after a leak was found on the Vale Beijing while it was preparing to set sail on its maiden voyage.
"Such mega ships have been newly built ... and it is not yet certain whether they can withstand various sea conditions," the group said in an email to Reuters.
"If there is any leaking of fuel oil, the pollution will be catastrophic."
The Vale Beijing is one of the first of 35 huge bulk carriers commissioned by Vale, which is betting on the ships to slash shipping costs so it can better compete with Australian rivals BHP Billiton and Rio Tinto.
China, however, hasn't opened up its ports to the ships.
Influential Chinese shipowners are lobbying the government to keep the vessels out of the country's ports, fearing Vale will use the fleet to monopolise the dry bulk shipping market at their expense.
(sourced Reuters)
Only time will tell if Vale's giant ore carriers will enter China
Tuesday, 13 December 2011
Brazilian iron ore miner Vale said it would take time for its new mega-ships to be able to enter Chinese ports but stood by its shipping strategy.Its multi-billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron-ore carriers as it aims to tap demand in China, the world's No. 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
"It was definitely not a mistake," Vale's executive director of iron ore and strategy, Jose Carlos Martins, told a news conference on Wednesday in due time. These safety measures, the drafting situations when asked whether he regretted building the mega-vessels before getting permission to berth at Chinese ports."I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia."
Martins would not speculate how long it will take. "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient," he said. China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations. Martins said there was one ship owner, "who is not happy with our strategy".
He added, "The Chinese government never said anything against it. This is a port issue. We need to solve it with port authorities." In a further setback for the group, the damaged Vale Beijing, which is the world's largest iron ore carrier, was towed on Tuesday from its berth in Brazil for repairs, raising potential safety worries about the mega-ships. The ship, delivered in September to its owner and operator, South Korea's STX Pan Ocean, is longer and wider than three soccer fields. It was about to start its first fully loaded voyage, a planned run to Rotterdam.
"Vale Beijing belongs to STX. It is an STX project, so we are awaiting their appraisal. The other ships have nothing to do with this. They are the same size but they are different projects. They are different," Martins said."Now we are waiting ... I am not minimising this, it is very serious and we are really concerned. But we need to wait for the conclusions. Everything we say now is speculation."
Martins said he hoped the ship classification society would have "a good explanation" for the damaged vessel.
He added that he was confident about the seaworthiness of other mega-ships already in service.
"Vale Brasil is now on its fifth voyage, and we have Vale Rio de Janeiro, Vale Italia. All those ships are already berthing, loading without a problem," he said.
NEW IRON ORE PRICE ERA
Vale's iron ore pricing strategy was also going through changes.
A 31 percent plunge in spot iron ore prices .IO62-CNI=SI in October prompted Asian steel producers to scour for adjustments in pricing the steelmaking ingredient to more closely reflect spot rates.
China Steel, Taiwan's top steelmaker, said it had agreed on a 23 percent cut in iron ore prices for October-December with the Brazilian miner, but Martins said rather than a discount, this was due to a switch to a new pricing method.
"Until last quarter we were using a lagging quarterly price, but with the recent drop in price, we got a lot of pressure from customers to change it and to use the (current) quarter average," Martins said.
"So we are now basing the price on the current quarter average ... nearly 80 percent of our sales are now done this way."
Vale said looking at average spot prices so far this quarter, based on the new mechanism, contract prices should be about 20 percent lower than if they were based on the previous method.
Martins said a move towards even shorter pricing was inevitable, adding there were several initiatives in the industry to create a pricing platform.
Source: Reuters
Brazilian iron ore miner Vale said it would take time for its new mega-ships to be able to enter Chinese ports but stood by its shipping strategy.Its multi-billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron-ore carriers as it aims to tap demand in China, the world's No. 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
"It was definitely not a mistake," Vale's executive director of iron ore and strategy, Jose Carlos Martins, told a news conference on Wednesday in due time. These safety measures, the drafting situations when asked whether he regretted building the mega-vessels before getting permission to berth at Chinese ports."I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia."
Martins would not speculate how long it will take. "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient," he said. China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations. Martins said there was one ship owner, "who is not happy with our strategy".
He added, "The Chinese government never said anything against it. This is a port issue. We need to solve it with port authorities." In a further setback for the group, the damaged Vale Beijing, which is the world's largest iron ore carrier, was towed on Tuesday from its berth in Brazil for repairs, raising potential safety worries about the mega-ships. The ship, delivered in September to its owner and operator, South Korea's STX Pan Ocean, is longer and wider than three soccer fields. It was about to start its first fully loaded voyage, a planned run to Rotterdam.
"Vale Beijing belongs to STX. It is an STX project, so we are awaiting their appraisal. The other ships have nothing to do with this. They are the same size but they are different projects. They are different," Martins said."Now we are waiting ... I am not minimising this, it is very serious and we are really concerned. But we need to wait for the conclusions. Everything we say now is speculation."
Martins said he hoped the ship classification society would have "a good explanation" for the damaged vessel.
He added that he was confident about the seaworthiness of other mega-ships already in service.
"Vale Brasil is now on its fifth voyage, and we have Vale Rio de Janeiro, Vale Italia. All those ships are already berthing, loading without a problem," he said.
NEW IRON ORE PRICE ERA
Vale's iron ore pricing strategy was also going through changes.
A 31 percent plunge in spot iron ore prices .IO62-CNI=SI in October prompted Asian steel producers to scour for adjustments in pricing the steelmaking ingredient to more closely reflect spot rates.
China Steel, Taiwan's top steelmaker, said it had agreed on a 23 percent cut in iron ore prices for October-December with the Brazilian miner, but Martins said rather than a discount, this was due to a switch to a new pricing method.
"Until last quarter we were using a lagging quarterly price, but with the recent drop in price, we got a lot of pressure from customers to change it and to use the (current) quarter average," Martins said.
"So we are now basing the price on the current quarter average ... nearly 80 percent of our sales are now done this way."
Vale said looking at average spot prices so far this quarter, based on the new mechanism, contract prices should be about 20 percent lower than if they were based on the previous method.
Martins said a move towards even shorter pricing was inevitable, adding there were several initiatives in the industry to create a pricing platform.
Source: Reuters
Monday, December 12, 2011
First of Vale's mega ships arriving in Asia next week
Sunday, 11 Dec 2011
According to Reuters Freightviews data, one of Brazilian mining giant Vale's huge iron ore carriers, the world's biggest, will arrive fully loaded in Asia for the first time next week with a stop in Singapore.
The 388,000 tonne Berge Everest, which has been leased to Vale, is expected to arrive in Singapore on December 15th 2011, but it was not clear whether the citystate was the ship's final destination.
China, Vale's main market, has yet to give these ships access to domestic ports, forcing the world's largest iron ore producer to send its vessels instead to Italy, Oman and other destinations.
The vessel's arrival also comes amid rising concerns over the safety of these Valemax ships after a similar vessel, Vale Beijing, became disabled before setting sail on its maiden voyage.
The crew of the Berge Everest has not formally requested to stop in Singapore, said a port official, and may decide instead to anchor far offshore for supplies and to refuel.
Singapore's ports were wide and deep enough to handle the Berge Everest should the crew decide to dock, authorities said.
A spokeswoman with Singapore-based Berge Bulk, the owner of the vessel, was not immediately available to comment on the ship's voyage plans.
The Berge Everest, built by China's Bohai Shipbuilding Heavy Industry, is one of six mega bulk ships to be delivered to Vale so far this year.
The company wants to build a fleet of as many as 35 mega vessels to sharply cut the cost of delivering the steel making ingredient to China.
(sourced from mb.com.ph)
Tuesday, December 6, 2011
Brazil port moves disabled ore vessel from berth
Tue Dec 6, 2011
RIO DE JANEIRO Dec 6 (Reuters) - The damaged Vale Beijing, the world's largest iron-ore carrier, was being moved from berth in Brazil for repairs, opening up space at a port responsible for about 10 percent of the world's iron ore exports, the harbor pilot's office in Sao Luis said on Tuesday.
The port is operated by Vale , the world's second-largest mining company, which also mined the iron ore that was loaded aboard the vessel.
(sourced Reuters)
RIO DE JANEIRO Dec 6 (Reuters) - The damaged Vale Beijing, the world's largest iron-ore carrier, was being moved from berth in Brazil for repairs, opening up space at a port responsible for about 10 percent of the world's iron ore exports, the harbor pilot's office in Sao Luis said on Tuesday.
The port is operated by Vale , the world's second-largest mining company, which also mined the iron ore that was loaded aboard the vessel.
(sourced Reuters)
Monday, October 10, 2011
NYK receives new iron ore carrier Frontier Lodestar
Monday, 10 Oct 2011
Frontier Lodestar, a new 180,000 DWT class ore carrier built by Imabari Shipbuilding Group's Koyo Dockyard Co Ltd, was delivered to NYK.
Frontier Lodestar will be chartered to TATA NYK Shipping Pte Ltd from NYK under a long term contract, and is expected to transport 1.4 million tonnes of ore and coal annually for TATA Steel UK.
The naming and delivery ceremony was attended by Mr Ronald Peter Jackson, former chartering manager at TATA Steel UK Ltd, Mr Rajiv Mukerji MD of TATA NYK Shipping Pte Ltd and Mr Kazuo Ogasawara, corporate officer at NYK.
TATA NYK Shipping is a joint venture established in 2007 by NYK and TATA Steel Ltd. The venture transports materials to and from India mainly for the TATA Group.
Frontier Lodestar, a new 180,000 DWT class ore carrier built by Imabari Shipbuilding Group's Koyo Dockyard Co Ltd, was delivered to NYK.
Frontier Lodestar will be chartered to TATA NYK Shipping Pte Ltd from NYK under a long term contract, and is expected to transport 1.4 million tonnes of ore and coal annually for TATA Steel UK.
The naming and delivery ceremony was attended by Mr Ronald Peter Jackson, former chartering manager at TATA Steel UK Ltd, Mr Rajiv Mukerji MD of TATA NYK Shipping Pte Ltd and Mr Kazuo Ogasawara, corporate officer at NYK.
TATA NYK Shipping is a joint venture established in 2007 by NYK and TATA Steel Ltd. The venture transports materials to and from India mainly for the TATA Group.
Wednesday, September 7, 2011
Vale open to sell or lease its large iron ore vessels - Report
Wednesday, 07 Sep 2011
Dow Jones reported that Brazilian iron ore miner Vale SA is open to selling or leasing on a long term basis the ownership of its very large ore carriers as it doesn't intend to be a major freight operator.
Vale currently has 34 vessels under constructions, 16 of which are being built by international shipowners and will be operated exclusively for the company under long term contracts.
The remaining 18 ships, which are being built in South Korean and Chinese shipyards, may be transferred or leased to international shipowners, including the Chinese.
A Rio de Janeiro based press officer for Vale said that "Our goal is to encourage the construction of vessels which are more efficient, with higher standards of operational safety, environmentally friendly these vessels allow for a reduction of 35% in carbon emissions per transported tonne and contribute to reduce the freight volatility in the market."
(sourced from Dow Jones Newswires)
Dow Jones reported that Brazilian iron ore miner Vale SA is open to selling or leasing on a long term basis the ownership of its very large ore carriers as it doesn't intend to be a major freight operator.
Vale currently has 34 vessels under constructions, 16 of which are being built by international shipowners and will be operated exclusively for the company under long term contracts.
The remaining 18 ships, which are being built in South Korean and Chinese shipyards, may be transferred or leased to international shipowners, including the Chinese.
A Rio de Janeiro based press officer for Vale said that "Our goal is to encourage the construction of vessels which are more efficient, with higher standards of operational safety, environmentally friendly these vessels allow for a reduction of 35% in carbon emissions per transported tonne and contribute to reduce the freight volatility in the market."
(sourced from Dow Jones Newswires)
Saturday, February 19, 2011
Vale starts trial runs of iron ore palletizing plant in Oman
Saturday, 19 Feb 2011
It is reported that Brazilian miner Vale SA has started test production at a new USD 1.356 billion iron ore palletizing complex in Oman.
Commercial production at the first pellet plant now being started up is due in March and the first product shipment is expected in May.
Vale's Oman industrial complex includes two pelletizing plants each with a capacity of 4.5 million tonnes a year of direct reduction pellets for use in steelmaking, as well as a distribution center with capacity to handle 40 million tonnes a year of pellets and a deep water bulk jetty, which will be used exclusively by Vale.
The company has also signed a long term accord with the Oman Shipping Company for construction of four 400,000 tonne capacity iron ore carriers for Vale's exclusive use.
It is reported that Brazilian miner Vale SA has started test production at a new USD 1.356 billion iron ore palletizing complex in Oman.
Commercial production at the first pellet plant now being started up is due in March and the first product shipment is expected in May.
Vale's Oman industrial complex includes two pelletizing plants each with a capacity of 4.5 million tonnes a year of direct reduction pellets for use in steelmaking, as well as a distribution center with capacity to handle 40 million tonnes a year of pellets and a deep water bulk jetty, which will be used exclusively by Vale.
The company has also signed a long term accord with the Oman Shipping Company for construction of four 400,000 tonne capacity iron ore carriers for Vale's exclusive use.
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