Japanese shipping company Kawasaki Kisen Kaisha ("K" Line) has concluded two long-term charter agreements for capesize bulk carriers with Australian-based miner Rio Tinto. One of the deals is for a 15-year charter from 2011, while the other charter agreement is for five years from 2011. The annual volume of iron ore to be shipped by the two capesize carriers in question is about 3 million mt.
"Rio Tinto has been planning to increase its exports of iron ore, with a focus on exports to China, while it has been seeking to secure a stable source of revenues for its charter business," "K" Line said in a statement.
According to "K" Line, Rio Tinto's exports of iron ore are expected to continue to grow, and these agreements will give "K" Line an important role in this growth, by providing reliable shipping services over the long term.