China Merchants Energy Shipping deal raises hope for Valemax return to Chinese waters
Growing signs of Beijing lifting the ban on the entry of mega ore vessels after Vale signs orders with the China Merchants unit and China Cosco
China Merchants Energy Shipping (CMES) has partnered with Brazilian mining giant Vale in a 25-year freight contract with the order of 10 very large ore carriers (VLOCs), a step that would seem to further indicate Beijing is lifting the ban on the entry of Valemax, the world's largest dry-cargo ship.
The deal follows a similar one between China Cosco Holdings, a unit of China Ocean Shipping (Group), and the Brazilian miner two weeks ago, in which the two agreed on a 25-year contract that involved 14 VLOCs.
CMES is a subsidiary of state-owned China Merchants Group.
Vale will charter 10 carriers from CMES on a long-term basis.
Details of both deals remain sketchy, but the vessels to be ordered are expected at the Valemax class with a capacity of 400,000 deadweight tonnes, topping the cap that is now prohibited at mainland ports, according to an industry source.
The mainland's two other national carriers, China Shipping (Group) and Sinotrans & CSC, were not joining any deal with Vale, the source said.