Vale in talks to sell fleet of giant ships to China

BRAZILIAN mining giant Vale is in talks with Chinese and other ship owners to sell or lease its planned fleet of giant bulk carriers.

The world’s biggest iron ore producer had planned to own a fleet of 19 dry bulk freighters to cut shipping costs from Brazil to top iron ore importer China, but has now decided it no longer needs to have direct ownership of the vessels.

Market sources said the move may make it easier for Vale to finalise negotiations with Chinese ports after the miner failed to gain access to them for its first giant bulk carrier on its maiden voyage in June .

There had been speculation among traders that the vessel, Vale Brasil, was unable to berth after China’s domestic shipping industry urged the authorities to protect its commercial interests.

The mega ships will cut freight costs to China by 20-25 per cent, Vale said.