Thursday, April 19, 2012

Vale delays Rongsheng VLOCs

Brazil's Vale keeps postponing deliveries of its three Valemax series, constructed by Jiangsu Rongsheng Heavy Industries of China, reported China's Economic Information.

Amid struggling shipping market, Vale puts off deliveries in order to reduce subsequent expenses, while Valemaxes' entries into Chinese port being still not allowed, explained a market player.

Vale has been delivered only one newbuilding VLOC, ordered at Rongsheng, up to now. The rest of completed newbuildings - Vale Dongjiakou, Vale Dalian and Vale Hebei - have been postponed their deliveries.

When Vale China took off to Vale, Chief Executive Officer and Executive Director Chen Qiang revealed that two-to-three Valemax vessels will be delivered in 2011 and the rest in 2012. However, only one made a departure last year and three have been deferred.

Meanwhile, the Chinese shipbuilder's uncollected payment is increasing due to Vale's postponement, etc.

According to 2011 annual report, Rongsheng's cash flow had dropped by 40%, year-on-year, while uncollected payment stood at CNY 7.2bn ($1.143bn), up by 76% from CNY 3.11bn in 2010.

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