China Eyes Iron Ore Shipping Partnership with Vale

China is interested in joining forces with Brazilian miner Vale to transfer iron ore from its huge Valemaxes onto smaller vessels, as these large vessels are banned from Chinese ports, writes Drewry.

The shipping partnership would save money, as moving iron ore from Valemax ships, which boast a carrying capacity of over 400k tonnes of iron ore, directly rather than transferring onto barges for discharging at Chinese ports would result in lower freight costs.

As a result of the ban, the Brazilian miner developed a transhipment terminal in the Philippines in February 2012, where the Valemaxes transfer iron ore into smaller ships bound for China. Vale is also setting up a centre for iron ore storage and distribution in Malaysia, which is expected to start operations this year. Valemaxes have also been docking at other ports in Italy, Japan, Oman and South Korea.

“The total freight cost including the cost of transferring iron ore from a Valemax vessel onto smaller vessels is $22 per tonne. The additional cost could be saved if a Brazilian Valemax vessel takes iron ore directly to China, without switching it to barges at nearby ports.

Vale could save about $7 per tonne over the cost and increase its competitiveness in addition to gaining an edge over Australian-based competitors such as BHP Billiton and Rio Tinto. Australian iron ore producers have normally had a $10 per tonne freight advantage over Brazilian iron ore miners, “ according to Drewry.

 

Drewry, June 18, 2014; Image: Vale

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >

2nd GREENTECH IN SHIPPING GLOBAL FORUM

Forum you will find out from the regulators, government bodies and major ports’ representatives what the near…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >