Shanghai Waigaoqiao Shipbuilding (SWS) and Qingdao Beihai Shipbuilding Heavy Industry have landed an order to each build four VLOCs worth a total of $680m from China Merchants Energy Shipping (CMES).

CMES announced to the Shanghai Stock Exchange that the newbuilding order for the eight 400,000-dwt mega ships was placed at the Chinese shipyards on 23 March in Shenzhen, China. The shipowner also booked two VLOCs at China Merchants Heavy Industry (Jiangsu), making up a total of 10 ships.

The price tag for each ship is $85m.

The Chinese shipowner said the order follows the signing of a 27-year charter contract with Brazil’s Vale to transport some 16m tonnes of iron ore each year. The charter deal is scheduled to start in the first half of 2018.

The first new VLOC is slated to be delivered in the first half of 2018, and the fourth unit is due no later than end-2019.