Brazilian miner Vale has sold two 400,000 dwt very large ore carriers (VLOCs) to nominees of China’s Bank of Communications Finance Leasing for a total of around $178m.
Vale is also negotiating the sale of its remaining two VLOCs in line with its strategy of strengthening its balance sheet and focusing on core assets.
Vale has been selling off its VLOC fleet to raise cash, while also bolstering ties with Chinese shipping companies after the lifting of the VLOC ban implemented by Chinese authorities. Last year, Vale signed COA agreements with Cosco and China Merchants and sold three VLOCs to a group of buyers led by China’s ICBC.
This project was doomed from day one. Vale was never going to be able to make any money with these ships. They dug a big hole for themselves.
You are quite correct, and this situation is another proof that shiphowning and decision making are to be left to professionals!
The entire Vale situation is a simple consequence of a series of political and unprofessional decisions taken by the Brazilian government in former President Lula government.
This leftist vision of the World Market normally ends this way, with huge monetary losses.
This just about sums it all up: https://splash247.com/rise-fall-vale-shipowner/