Kawasaki Kisen Kaisha, Ltd. (“K” Line) concluded two long-term charter agreements for capesize bulk carriers with Rio Tinto.
Outline of the Agreement
a) 5-year long-term charter agreement using one capesize bulk carrier from 2011.
b) 15-year long-term charter agreement using one capesize bulk carrier from 2011.
Annual volume shipped: About 3 million tons
Rio Tinto is one of the world's leading mining companies. Rio Tinto was planning to increase its exports of iron ore, with a focus on exports to China, while "K" Line was seeking to secure a stable source of revenues for its charter business. The two companies have thus recently agreed to sign two new contracts, in order to form a strong, long-term strategic partnership.
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.