China’s new port rules still pose hurdles for VLOCs

China’s Ministry of Transport’s new port regulations on berthing released on Tuesday February 11 continue to pose a setback for larger vessels like very large ore carriers (VLOCs).

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The new rules put a capacity limit of 250,000 deadweight tonnes (dwt) for fully loaded dry bulk carriers to ports of the same berthing capacity. But dry bulk carriers of more than 250,000 dwt capacity can dock at Chinese ports only if their load does not exceed the 250,000-dwt limit, according to the announcement.

They will take effect on July 1.

The new rules will also help to check and monitor Chinese ports’ berthing capacities, Yang Huaxiong, deputy director of water transport of the Ministry of Transport, was reportedly quoted as saying recently by Chinese media.

Market participants see the new regulations as a reaction to Vale’s 400,000-dwt VLOCs docking at Chinese ports several times without government approval.

“Theoretically, VLOCs are able to dock at Chinese ports now if they reduce their load to within 250,000 dwt,” a source at a shipping company in Jiangsu province said.

“But Vale aims to reduce shipping costs by introducing the VLOCs. The trouble with unloading before docking at Chinese ports is that it would only offset the benefit of using VLOCs.

“In a way, China is indirectly refusing entry to VLOCs,” he added.

Some other market participants consider the new regulations a good sign, as the Chinese government had never approved bulk carriers larger than 250,000 dwt for docking in the country’s ports previously.

“At least, larger carriers get to enter China now. For VLOCs, they can unload in Japan or the Philippines,” another shipping source in Fujian province said.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.