China’s Ministry of Transport announced that ships of 250,000 tonnages at most are allowed to berth ports starting July 1, maintaining the ban affecting Braizian Miner Vale’s large capacity ore vessels. The ban was initially imposed in January 2012.
Vale has been expecting China to lift the ban protecting domestic shipping industry, and claims that this ban is costing them USD 2 to USD 3 per ton.
Vale controls almost a quarter of world supply, but is losing market share to its Australian rivals which enjoy much shorter and cheaper routes to Chinese ports.Although its Valemax fleet is calling on ports in Japan, South Korea, Italy and elsewhere, Vale has been forced to use transit centres in Africa and a distribution facility in the Philippines to bring ore to its customers in China because of the ban. The Brazilian giant is also building a transshipment facility in Malaysia to service the region.
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