reports according to vessel tracking data compiled by Bloomberg, two of Vale鈥檚 massive Valemax ore carriers 鈥� Vale China and Vale Brasil 鈥� were idle in Subic Bay, Philippines for just under a month聽聽transferring cargo to smaller ships to carry iron ore onto China.
Vale, the world鈥檚 number one iron ore producer, 聽explained that its 鈥渇loating transfer station, which allows partial or total transfer of iron ore cargoes from ship to ship, is ramping up and not operating at full capacity yet.鈥�
Vale鈥檚 massive dry bulk carriers were designed to service China, where some 45% of the Brazilian company鈥檚 ore exports are destined.
But at the moment the vessels that can carry 400,000 dead-weight tonnes of iron ore and cost just under $110 millions a shot are barred from China.
Vale told earlier this month it expects to receive the go-ahead 鈥渨ithin months鈥� to unload the company鈥檚 massive Valemax vessels at Chinese ports.
Brazil-based Vale has so far received 8 of the 35 it has ordered from Korean and Chinese shipbuilders, but they have been drifting aimlessly since May because China, by far Vale鈥檚 biggest customer, has so far only granted one vessel port entry and has since banned anything over 300,000 tonnes.
In December, one of the ships 鈥� rather unfortunately called the Vale Beijing 鈥� ruptured its hull and temporarily blocked a port from where Vale ships more than 130 million tonnes per annum.
are saying the carriers will worsen overcapacity and depress freight rates, while steelmakers are also against the leviathan-size ships, which are described as 鈥渆ach almost as large as the Bank of America tower in New York,鈥� because they will give Vale even more control over pricing and delivery.
reports according website VesselsValue.com, the latest Valemax to be received by the company is already worth 36% less than what it cost.
The Vale Malaysia鈥檚 worth is now pegged at only $68 million because a 鈥渟lump in values of dry-bulk ships that were ordered before returns plunged is getting worse as shipyards lower contract prices for new vessels.鈥�
80% of the world鈥檚 iron ore is borne by so-called Capesize vessels which can only carry a third of the cargo of a Valemax. The value of these ships has declined even more 鈥� 鈥渘ew Capesize ships worth $69.9 million in April 2010 are assessed at $39.9 million today,鈥� according to a VesselsValue analyst.
Vale, BHP Billiton and Rio Tinto completely dominate the 1 billion tonne seaborne iron ore trade 鈥� Vale alone controls a quarter of world supply.