According to TradeWinds, Brazilian mining giant Vale is planning a large-scale shipbuilding project, intending to order approximately 30 large vessels with a total investment of around $3 billion. The new ships will be capable of using high-sulfur fuel oil, ethanol, or methanol as fuel.
Sources revealed that Vale has initiated a bidding process for long-term charters or contracts of affreightment (COAs) for approximately 20 Newcastlemax bulk carriers with a deadweight tonnage of 210,000 tons and 10 Guaibamax very large ore carriers (VLOCs) with a deadweight tonnage of 325,000 tons. The charter or contract terms are for 25 years or longer.
Although the exact number of vessels to be deployed has not been disclosed, Vale emphasized that its iron ore production reached 336 million tons in 2025. The company’s iron ore transportation demand is characterized by long-term stability and substantial scale, and the corresponding volume of charter contracts will also be very significant.
In terms of construction costs, shipbrokers estimate that the per-vessel cost for Newcastlemax bulk carriers utilizing the industry’s pioneering fuel type approaches $105 million, while Guaibamax VLOCs cost approximately $130 million per vessel. Conventional fuel-powered Newcastlemax and Guaibamax vessels are priced at roughly $75 million and $115 million to $118 million per ship, respectively.
Regarding shipbuilders, industry analysts suggest that Vale is likely to select Chinese shipbuilders for its newbuildings. Compared to Japanese shipyards, Chinese facilities offer greater advantages in terms of cost and economies of scale. Meanwhile, South Korean shipbuilders have long since “abandoned” the low-value-added bulk carrier segment.
However, this major order still faces practical challenges: Currently, Chinese shipyards with the capability to build large bulk carriers are operating at full capacity, with most slots already booked through the end of 2029.