Japanese shipowner NS United Kaiun Kaisha (NSU) has signed another 25-year contract of affreightment (COA) to transport Brazilian iron ore with the world’s largest iron ore producer Vale on November 27, 2017.
NSU said that the contract relates to the transportation of an estimated volume of 40 million tons throughout the contract duration to be carried out by the company’s newbuilding 400,000 dwt eco-type ore carrier.
Under the terms of the deal, the charter will commence in the first half of 2020 on the service route between Brazil and China.
“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 company said commenting on the deal.
This COA follows the 25-year contract between NSU and Vale concluded in December 2016 which will commence in the second half of 2019.