Recently, Brazilian mining giant Vale signed a transportation contract worth approximately $300 million with South Korea’s Polaris Shipping, further solidifying their existing partnership.
According to TradeWinds, the Seoul-based bulk carrier company has finalized a five-year iron ore transportation contract with Vale involving four Newcastlemax bulk carriers. The contract will run from Q1 2026 to 2031, during which these four vessels will handle iron ore shipments from Brazil to China.
As of now, Polaris Shipping has not commented on the matter. Shipping industry observers familiar with the South Korean company suggest Polaris may acquire or charter these four vessels to fulfill the contract with Vale.
Clarksons Shipping Intelligence Network data shows Polaris Shipping operates a fleet of 29 vessels, including 18 VLOCs (very large ore carriers), 2 Newcastlemax bulk carriers, 5 Capesize bulk carriers, 2 LR2 tankers, and 2 feeder container ships.
In early 2023, Polaris Shipping sold four Newcastlemax bulk carriers to Greek owner Thenamaris for over $67 million per vessel. The ships were the 209,500-dwt Sea Bird (ex-Solar Pride), Sea Brilliance (ex-Solar Quantum), and the 208,900-dwt Seabreeze (ex-Solar Nova), Sea Beauty (ex-Solar Oak).
Polaris Shipping has maintained a long-term partnership with Vale, with multiple VLOCs chartered to the mining giant for up to 25 years.
Industry sources note Polaris is the third South Korean shipping company to sign a transport deal with Vale this year, following HMM and Pan Ocean.
HMM began a 10-year contract this month valued at KRW 6.362 trillion (~$462 million), while Pan Ocean’s five-year agreement with Vale, involving two ore carriers worth about $160 million, commenced on April 15.
