Japanese owner NS United Kaiun Kaisha (NSU) has fixed another deal with Brazilian miner Vale and will order a very large ore carrier (VLOC) on home soil to carry iron ore. The 25-year contract of affreightment (COA) to transport Brazilian iron ore will commence in the second half of 2020.
This COA follows the 25-year contract between NSU and Vale concluded in December 2016 which will commence in the second half of 2019.
“As NSU targets a large portfolio of domestic and overseas customers in accordance with its Mid-Term Business Plan (FY 2017-2019), NSU is confident that this new long-term business will contribute to efficient and stable transport for Vale’s export expansion strategy,” the Japanese owner said in a release.
Following the high profile sinking of an ancient VLOC hauling its iron ore earlier this year, Vale has set about sealing a series of deals with predominantly Asian owners to carry its raw materials on brand new giant bulkers.