Vale Mega Ship Finally Accepted at Chinese Port
One of the world’s largest commodity ships, a giant iron ore vessel operated for Vale, has finally reached a Chinese port for the first time after China’s refusal to allow the mega ships into their waters.
The Vale Company is spending upwards of $8 billion to build the world’s largest dry bulk ships on the oceans today, all in the name of cutting costs of shipping iron ore to China. Shipping between China and the Brazil was delayed by more than six months following uncertainty that the new fleet would be able to access its largest market.
Because of the prior denials, Vale had sent their ships and iron ore exports to Italy, Oman, and other nations while Beijing twiddled their thumbs about accepting the dry bulk behemoths into their ports. In fact, the first mega ship from Vale, Vale Brasil, was forced to turn around in the Indian Ocean in June after Chinese officials failed to give permission for the ship’s planned docking at Dalian.
Until now, Vale had failed to gain approval for the six already-built Vale giants to even make a stop at any Chinese port. Uncertainty came to a close this Wednesday after a ship from Vale’s growing iron ore fleet, the 388,000 DWT BERGE EVEREST, finally anchored in Dalian, China with permission from the Chinese government. BERGE EVEREST’s measurements indicated that the vessel was carrying a fully loaded cargo, as reported from a technical executive of the vessel’s owner, BW Fleet Management in Singapore. It is still unclear whether or not the ship has gained clearance to unload at Dalian yet.
The Brazilian mining company shipping on Vale’s fleet ships about 45% of iron ore sales to China, making China the largest consumer of the steel-making mineral.