Mainland shipyards could see a raft of new orders for the massive vessels known as very large ore carriers (VLOCs) once domestic authorities resolve regulatory and other issues, a senior shipping analyst has said.
Jon Windham, Asian maritime analyst at Barclays Bank in Hong Kong, estimated that VLOCs were up to 30 per cent more fuel-efficient per tonne of iron ore than traditional Capesize vessels.
VLOCs carry up to 400,000 tonnes of ore, while Capesize ships typically carry 160,000 to 170,000 tonnes. Shipbrokers say VLOCs consume 103 to 111 tonnes of fuel a day, while a Capesize ship uses about 70 tonnes of fuel, although the next generation of Capesize ships will use about 50 tonnes.
'Dry bulk from Brazil to China is the longest major cargo route. Each VLOC saves roughly US$6.2 million in fuel cost per year at current fuel prices,' Windham said. 'If the efficiency gains prove accurate, it might push another round of ordering, which the shipyards badly need.'
Vale, the Brazilian commodities giant, ordered 12 VLOCs, capable of carrying 400,000 tonnes of iron ore, from China Rongsheng Heavy Industries in 2008 at a total cost of about US$1.6 billion.
Seven similar sized ships were ordered from South Korea's Daewoo Shipbuilding and Marine Engineering, while Vale has taken a further 16 VLOCs and Capesize vessels on long-term charter.