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80% of the VLOC orderbook now controlled by Chinese leasing companies

Photo of Sam Chambers Sam ChambersFebruary 7, 2020
1 88 Less than a minute

Four out of every five very large ore carriers (VLOCs) on order are controlled by Chinese leasing companies, data from Alphabulk, part of AXSMarine, shows.

Chinese ship leasing companies have 80% of the VLOC orderbook, and 20% of the capesize orderbook, the Alphabulk research shows, pointing towards an ever more closed shop in the industrial supply chain of moving iron ore around the world.

Broken down, some 23% of these combined orders for capes and VLOCs by number are from Bocom, 22% from CSSC,19% from ICBC and 12% from CDB.

“Leasing is well suited to capital intensive assets that are deployed in industrial activities, rather than capital intensive assets deployed in the spot market,” Alphabulk noted in its latest weekly report.

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Photo of Sam Chambers Sam ChambersFebruary 7, 2020
1 88 Less than a minute
Photo of Sam Chambers

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Comments

  1. Is no one worrying what happens when theres a higher demand for iron ore than the market can provide some 10 years ahead from now? I can’t foresee a Chinese smelting plant / foundry etc missing out on a delivery in that circumstance?

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