Shanghai: Last week Brazilian miner Vale signed a contract with Shandong Shipping which should pave the way for the Brazilian firm to ship iron ore to China on its valemaxes. Shandong Shipping will operate four of Vale’s 400,000dwt VLOCs something that has raised concerns from the China Shipowners' Association (CSA).
“The National Development and Reform Commission has been negotiating with Vale on behalf of Ministry of Transport on the entry of Vale’s VLOCs and there haven’t been any results yet. Shandong Shipping has put the government in an awkward situation,” said a source who is close to the Ministry of Transport.
“We will question Shandong Shipping about the signing with Vale, it was completely inappropriate,” Zhang Shouguo, vice chairman and secretary general of CSA said, adding that if the shipowners in China are all chasing their own benefits, it will eventually harm the whole shipping industry in China. [07/11/13]