New VLOC underway

Industry sources say that yards in Japan, South Korea and China have been sounded out to design a new 250,000 DWT bulker specifically for the coal trades. One industry expert says the impetus has come from the world’s largest mining company, Australia’s BHP Billiton, which is said to be studying methods to optimise the loading of coal at its terminals.

The giant ship will have a shallow draught and a wide beam. “It will be used for carrying coal and not iron ore,” said the expert. “We understand some shipyards in the Far East have already been approached.” A shipbuilding source familiar with the project says discussions are still at a very early stage and it will be some time before any deals are done. He adds that shipping companies are expecting yards to be more flexible on price given the poor outlook on the orders front.

Most Australian ports will be able to accommodate the new bulker design but there are still challenges since coal has different grades and to fill such a big ship with one type of coal will not be easy. Iron ore, on the other hand, is a homogenous commodity and can easily fill up a 300,000 DWT vessel.