Dry Bits

MOL Power Mitsui O.S.K. Lines Ltd. (MOL; President: Koichi Muto) today announced the signing of a long-term transport contract with Vale International SA, a subsidiary of Vale S.A. for two very large ore carriers (VLOCs) on November 18. Two 300,000 DWT-class newbuilding vessels, which will be constructed at Universal Shipbuilding Corporation and slated for completion in 2012 and 2013, will serve the Vale-China shuttle service , transporting iron ore for 25 years. MOL, as one of the world’s largest Cape-size bulker operators, already operates five 300,000-class VLOCs This is not the first “China Chore” MOL has signed. MOL previously concluded a long-term transport contract with Ansteel Group (China) Is this a match made in Heaven? We shall see.

Offshore 247 Brunei Shell Petroleum has extended the contract for Seadrill's rig. The contract value is estimated to approximately $131 million. The new contract is scheduled to start in direct continuation of the current contract with Shell, at the end of the first quarter 2012, Seadrill informs. The holders of DRYS might wish to reconsider if any spinoff of the drilling segment should really be included on their “wish list” for Santa. The mixed fleet strategy is arguably the only viable option to survival in a Chinese dominated dry bulk world.

Baird Maritime Denmark: Tanker and dry bulk shipper, TORM, has entered into an agreement to sell the two Kamsarmax dry bulk newbuildings, ‘TORM Karen’ and ‘TORM Kate’. Both vessels are planned to be delivered to TORM in the first quarter of 2011. The newbuildings have been sold for a total consideration of US$90 million with a total net loss of US$16 million. Following the sale of the vessels, TORM's owned fleet consists of 68 product tankers and two dry bulk vessels. In addition, TORM has seven product tankers and two dry bulk vessels on order. It would be a surprise if TORM does not cancel the remaining two bulkers on order. btw they plan to take the hit for reporting purposes in Q1-11. Bottom feeders alert!>

The Oregonian An Australian coal company wants to build a coal-export terminal at a private port in Longview, Wash., a move that would allow 5.7 million tons of U.S. coal exports to Asia each year just as environmental activists are trying to shut down coal-fired power plants in Washington and Oregon. Millennium Bulk Logistics, a subsidiary of Australia’s Ambre Energy, plans to build the first major U.S. export terminal on the West Coast along the banks of the Columbia River. Something just doesn’t sound right about an Aussie company building an export terminal in the US. Could this have something to do with the new Australian Export Taxes?
Good Fortunes