Vale is targeting newcastlemax newbuildings for long-term charters, which would mark a first for the company.
The Brazilian mining giant is said to be seeking to charter up to four 210,000-dwt bulkers backed by long-term contracts of affreightment (COAs).
Bulk carriers are getting bigger and there is a growing trend that charterers are booking newcastlemaxes
One shipbuilding market expert said this is the first time Vale has looked to charter newcastlemax newbuildings for long-term COAs. Previously, it has relied on 400,000-dwt Valemax VLOCs and 325,000-dwt Guaibamaxes.
A dry bulk source who is familiar with Vale said it charters capesize and newcastlemax bulkers from the spot market.
“Bulk carriers are getting bigger and there is a growing trend that charterers are booking newcastlemaxes,” the source said.
A Vale spokeswoman approached for information on the potential charters said the New York and Rio de Janeiro-listed company is in a “quiet period” before its next earnings report.
August tender
Vale put out its tender two months ago, a shipbuilding source told TradeWinds. The miner is seeking to charter two firm vessels plus two options built to IMO Tier III emission standards and fitted with exhaust gas scrubbers.
Chinese shipbuilders in the mix
The names of companies that are participating in Vale’s tender have not been disclosed, but shipbuilding sources said a few shipyards in China have been approached, including state-owned Qingdao Beihai Shipbuilding Heavy Industry, Bohai Shipbuilding Heavy Industry and Shanghai Waigaoqiao Shipbuilding.
Shipbuilding players said newbuilding prices for newcastlemaxes are around $55m per vessel, with delivery dates probably scheduled for 2020.
Newcastlemax orders at 23
According to Clarksons’ Shipping Intelligence Network, 23 newcastlemax bulker newbuildings have been ordered this year in China and Japan. Companies that ordered the vessels included 2020 Bulkers, Mangrove Partners, Golden Ocean, Foremost Maritime and Berge Bulk.
TradeWinds reported last week that Belgium’s Bocimar was said to have inked a letter of intent for up to four 262,000-dwt newcastlemaxes at Qingdao Beihai. However, managing director Benoit Timmermans denied that order and said Bocimar is not working on a specific newbuilding project.
Additionally, 37 ore carriers in the 325,000-dwt range were ordered at shipyards in the Far East last year and this year on the back of long-term COAs from Vale.
The Guaibamaxes were ordered by South Korean, Taiwanese and Chinese companies, including Polaris, SK Shipping, Pan Ocean, Korea Line, H-Line, U-Ming Marine Transport, ICBC Leasing and China Ore Shipping.
Eric Martin contributed to this article
