Brokers: Vale Tied to Up to 30 New Valemaxes

Business & Finance

Brazilian miner Vale has been linked to a time charter deal for up to 30 Valemax newbuilds contracted from seven different companies.

Under the long-term contracts of affreightment lasting up to 25 years, Chinese joint venture between ICBC Leasing and China Merchants would be providing ten 400,000 DWT bulkers, while South Korean shipping company Pan Ocean would be providing 4 Valemax newbuilds.

In addition, Pan Ocean’s compatriots Korea Line Corporation, H Line Shipping, and SK Shipping would each contribute two 400,000 DWT bulkers, data from Intermodal Research shows.

Furthermore, Polaris Shipping is reportedly ordering up to ten newbuilds to support the contract.

The orders are said to be spread across several Chinese and South Korean yards, with no clear delivery dates disclosed.

The move comes at a time of very low newbuilding prices for dry bulk tonnage, which might have been the reason behind the ordering spree.

When asked about the order by World Maritime News, Vale said it could not comment on the reports.

Separately, last month, Vale and nominees of Bank of Communications Finance Leasing (Bocomm) concluded the sale and purchase of two Valemaxes owned and currently operated by the Brazilian giant.

The miner said the transaction totaled USD 178 million, which was received by Vale on August 8, 2017, at the delivery of the vessels.

“Vale is also negotiating the sale of its remaining two VLOCs, which is consistent with its strategy of strengthening its balance sheet and focusing on core assets,” the company added.

World Maritime News Staff