Vale: don’t blame us, work with us.

Speaking at the opening session of TradeWinds Shipping China conference in Shanghai, Gurinder Singh, Director – Shipping & Distribution of Brazilian mining giant Vale invited shipowners to participate in the Vale initiative through long terms charters at “sustainable” freight rates.

He suggested it was wrong to infer that Vale was responsible for overcapacity in the dry bulk market, pointing to ‘reckless ordering’ as the main culprit for depressed rates.

Singh told delegates that China is an “iron ore magnet” and that while ships are a major contributor to Vale’s core business, the company is not about owning vessels per se, but willing to charter vessels for long term periods at prices that “reflect the cost of investment and providing reasonable rates of return.”

Referring to the capesize market, Singh suggested that the lack of backhaul trade implies that capes are not efficient enough in terms of price and carbon footprint.  

Notwithstanding recent press reports, he said that Chinese shipowners have actually been increasing their share of Vale’s export to China.