A $1.85bn order for 20 very large ore carrier (VLOC) newbuildings has been shared between four state-owned Chinese yards.

Shanghai Waigaoqiao Shipbuilding (SWS), Qingdao Beihai Shipbuilding Heavy Industry, Bohai Shipbuilding Heavy Industry and China Merchants Heavy Industries (CMHI) will build the ships for China Ore Shipping (COS) and China Merchants Energy Shipping (CMES).

Each company is signing up for 10 newbuildings of 400,000 dwt on the back of 25-year contracts of affreightment (COAs) with Brazilian mining company Vale.