In September 12, COSCO and Vale signed framework agreement which marks ending the long-term opposition of the two sides.

Looking at the announced cooperate agreement, the two sides will launch cooperation in iron ore shipment, capacity deployment and cooperation ways.

The significance for cooperation in modern market is to explore benefits of multipartite sides. But for the cooperation, the industry had a doubtful view. The iron ore market is in declining and oversupply trend. The signed contract may repeat the mistake of high chart and long chart period.

COSCO is the not only one benefited part and will create conditions for China to allow the entrance of Valemax. The berthing experience has proved that Dalian port, Qingdao Port, Lianyungang Port and Zhoushan Port has sufficient conditions to take in Valemax.

The insiders believed that in recent years, Vale tried to build up fleet focusing on improving the weak points of long distance shipment, narrowing the gap among the competitors. Therefore, the cooperation will bring substantiality benefits.