Bloomberg reported that Vale SA, the mining company building a fleet of the biggest ever iron ore carriers talks with Chinese ship owners to buy or hire the vessels slowed this year after the government blocked their access to the nation’s ports.

Vale said the Rio de Janeiro based company drafted a letter of intent with China Cosco Holdings Ltd the nation largest owner in June 2009 to build and charter the carriers. It also signed a framework agreement with an unidentified Chinese shipping company in October 2011 to sell as many as four Valemaxes. Talks slowed down after the transport ministry said in January that ports needed its permission before allowing the ships to dock.

Vale is spending more than USD 8 billion on the 35 Valemaxes to lower costs on the 35-day voyage to Asia, the destination of about 45% of its Brazilian iron ore. Fifteen of the vessels, more than twice the size of conventional carriers have entered service. Vale will eventually own 19 with the rest hired from other owners. The ships are already calling in the Netherlands, Italy, Oman and the Philippines and ports are being prepared in South Korea and Japan.

The company wrote in the report that “China’s main ports are world leaders in design and are regularly receiving container and oil tanker ships larger than the Valemax ships. The change of policy appears to benefit ship owners who voiced a strong opposition to Valemax berthing in China.”

Source - Bloomberg

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