China, which is a major destination for Brazilian iron ore exports, has amended rules that will make it easier for Brazil’s Vale to load at local ports, according to media reports. Chinese rules prevented ships of more than 250,000 dwt to dock at local ports.
But according to media reports, a document from the nation’s Ministry of Transport said China would now recognize ships with capacity of 400,000 dwt.
Reports said the document signalizes a first step from the government to allow Valemax ships, Vale’s 400,000 dwt iron ore carriers, to enter China.
The document said the rule is to "adjust to developments in cargo ship sizes, regulate large-scale port terminal designs and to encourage the scientific development of ports."
Vale’s president, Murilo Ferreira, confirmed the rule change in an interview to Brazil media, adding the use of larger vessels cut about US$4-$6 off the freight rate Brazil has to ship the product to Asia.
Last year, a Valemax iron ore carrier was allowed to dock at Dongjiakou port in Qingdao, after a series of deals with Chinese firms.