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it seems to be a bad news.... but it is not finally confirmed....this news is from Llyord's list
Vale cancels $1.6bn VLOC order at Rongsheng yardBy Michelle Wiese Bockmann - Thursday 27 November 2008
The credit sqeeze, global financial crisis and bloated dry orderbook of 290m dwt, have combined to see as many as 250 bulk carriers orders cancelled this year, based on latest estimates.
FURTHER evidence has emerged that one of the world’s largest and most significant bulk carrier newbuilding orders, for 12 very large ore carriers, has been cancelled.
The VLOCs, worth $1.6bn, were ordered by Brazilian iron ore producer, Vale, earlier this year at China’s Rongsheng shipyard.
This week a senior official from one of Japan’s major trading houses also affirmed the widely-held industry view that the ships have been cancelled.
MC Resources Trade & Logistics chief operating officer Yuichi Uemoto told a conference in Singapore that 14 VLOCs were among the rising number of bulk carrier cancellations.
Mr Uemoto specifically referred to the Vale order, when detailing the cancellation. MC Resources is the trading arm of Mitsui & Co.
The credit sqeeze, global financial crisis and bloated dry orderbook of 290m dwt, have combined to see as many as 250 bulk carriers orders cancelled this year, based on latest estimates.
Vale has repeatedly declined to answer queries about the status of the VLOC order. Rongsheng has confirmed that refund guarantees have been issued against an unspecificed number of the VLOCs. The ships, each of 400,000 dwt, are due for delivery in 2011 and 2012.
Doubt arose publicly over the order status when Excel Maritime Carriers chief executive Stamatis Molaris told an investor conference call in early November that the VLOCs were “not going to happen”.
He subsequently told Lloyd’s List he repeated what he heard and read in the industry.
Finnish engine marker Wartsila announced on October 29 that it would supply the engines for Rongsheng Shipbuilding & Heavy Industries of China, for the VLOC order.
Wartsila was unable to immediately respond to questions about the status of this order.
A leading shipowner and operator told Lloyd’s List this week he believed that VLOCs would become the “ultra large crude carrier of the dry industry”. Despite industry hopes, only a handful of ULCCs, of up to 500,000 dwt remain operating after their size and scale limited trading.
Vale intended to build a fleet of 20 VLOCs to use on a dedicated shuttle service from Brazil to Asia from 2011, to reduce rising freight costs for its largest growing market. But charter rates have tumbled to such low levels that they undermine the viability of a super-sized fleet.
A total of 109 VLOCs, classified as 220,000 dwt or above, are currently on order, according to Paris-based broker Barry Rogliano Salles. The broker estimates that 17 will be delivered in 2009, 23 in 2010, 39 in 2011 and 24 in 2012.
Additional reporting Marcus Hand |
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