Maritime Industry Briefing: Simandou VLOC Concerns, POSH Offshore Win, and IMO GHG Talks

## Simandou's Capesize Promise May Be Overstated, Analysts Warn Capesize owners banking on Guinea's Simandou iron ore project to deliver a structural uplift to dry bulk markets may need to recalibrate their expectations, according to a new market note from shipbroker SSY cited by Splash247. The emerging Guinea-to-China iron ore trade is taking shape as a tightly controlled logistics chain dominated by very large ore carriers (VLOCs), rather than the open spot-market capesize volumes many had anticipated. The distinction is commercially significant. VLOCs — typically purpose-built vessels operating under long-term contracts between miners and major Chinese steel mills — tend to bypass the broader capesize spot market, limiting the freight rate uplift that independent owners might otherwise capture. If Simandou volumes flow predominantly through dedicated VLOC conveyor belts, the project's transformative impact on capesize earnings could be materially diluted. Analysts and owners alike will be watching vessel ordering patterns and contract structures closely as the project ramps toward full production. --- ## POSH Secures Subsea Installation Contract from Subsea 7 in Saudi Arabia Singapore-headquartered PACC Offshore Services Holdings (POSH) has been awarded a lump-sum subsea diving and installation contract by Subsea 7's Saudi Arabian subsidiary, Subsea 7 Arabia Co., according to Splash247. The scope of work is set to be carried out in the Middle East, reinforcing POSH's growing footprint in the region's offshore energy services sector. The contract award underscores continued investment in subsea infrastructure across the Arabian Gulf, where national oil companies and international contractors are sustaining elevated activity levels. For POSH, the win represents a further diversification of its offshore marine services portfolio beyond its traditional Southeast Asian base. --- ## IMO Net-Zero Fuel Talks Face Significant Obstacles Ahead of December Session The International Maritime Organization's Intersessional Working Group (IWG) on greenhouse gas emissions reduction is preparing to convene ahead of an Extraordinary Session of the Marine Environment Protection Committee (MEPC) scheduled for December, according to Seatrade Maritime. However, the renewed discussions around a Net-Zero Framework (NZF) are expected to encounter two critical hurdles that could complicate progress. While specific details of the obstacles were not fully disclosed in early reporting, the talks are taking place against a backdrop of persistent disagreement among member states over the pace of decarbonisation, the structure of a potential global carbon levy, and the equitable treatment of developing nations in the energy transition. The December MEPC Extraordinary Session is widely regarded as a pivotal moment for the shipping industry's regulatory trajectory, making the outcome of the IWG discussions closely watched by shipowners, flag states, and fuel suppliers alike. --- *Sources: Splash247, Seatrade Maritime*