New | China lifts three-year ban on Valemax cargo ships

A new government circular on the design of dry bulk cargo ships released on Monday indicates that mainland China has lifted the ban on Valemax, the giant iron ore carriers developed by Brazilian miner Vale that was forbidden to dock at mainland ports for three years.

The Ministry of Transport said in its Circular 9 that an amendment had been made to the Design Code of General Layout for Sea Ports that enlisted dry bulk cargo ships of 400,000 deadweight ton (dwt) capacity. The design code previously only covered bulk cargo ships up to 350,000 dwt.

The amendment effectively eliminated a three-year old ban on Valemax class ships, which were designed by Vale to lower transportation costs from Brazil to China when competing with Australian-produced iron ore.

The ministry initially allowed Valemax, the world’s largest cargo ship, to enter China on a case-by-case basis in 2011, until a circular promulgated in January 2012 suspended the practice, effectively prohibiting the vessels from mooring at mainland ports. The 2012 circular cited safety concerns as the reason for the ban, which was widely believed to protect the interests of national carriers such as China Ocean Shipping Group (Cosco).

Cosco and China Shipowners’ Association have repeatedly said these vessels were not safe enough for mainland ports to handle, an allegation that Vale rejected.

Vale investor relations chief Rogerio Nogueira said in a conference call two weeks ago that the obstruction facing Valemax’s has been overcome, according to Reuters.