How does the dedicated COSCO ULOC iron ore fleet affect daily rates for Panamax and Capesize coal vessels?
Also, one of China's major shippers, Vale, would also become a major contributor to the problem by ordering a very large fleet of 36 Ultra Large Ore Carriers (ULOCs).
Currently six of COSCO's 10 ULOCs are loaded with Vale's Brazilian iron ore and are travelling toward iron ore terminals in China.
The vessel is similar in capacity to four ULOCs currently being built for Oman Shipping Company and leased to Vale for the transportation of iron ore from Brazil to Sohar.
Sohar's strategic location outside the Arabian Gulf, coupled with the deepwater terminal, enables Vale to bring ULOCs from Brazil and distribute the final product in smaller vessels.