On July 10, China-based major heavy industries group China Rongsheng Heavy Industries Group Holdings Limited (China Rongsheng Heavy Industries) announced that it delivered the first China-built mega iron ore carrier of 400,000 dwt named Vale China to the Brazilian iron ore miner Vale. This is the first carrier of at least 19 mega iron ore carriers to be delivered in the coming two years.
According to Reuters, China Rongsheng has a contract to build at least 16 of them, with the rest to be built by Korean shipbuilder Daewoo Shipbuilding & Marine Engineering.
These Valemax carriers will have a negative effect of the global freight market since ship supply outweighs demand.
After the Brazilian miner's first Valemax carrier, Vale Brasil, built by Daewoo made its first shipment to Italy, Vale says that Vale China is expected to head to Chinese ports as its first destination.
Vale expects at least 10 ports worldwide to be able to receive the maxi-sized ships.