South Korea’s Polaris Shipping has placed an order for up to four newcastlemax bulk carriers at China’s Hengli Shipbuilding, tied to employment with Brazilian mining giant Vale, according to Splash247.
Newcastlemax Order at Hengli
Shipbuilding sources cited by Splash247 report that the Seoul-based owner has contracted two firm 210,000 dwt bulkers at the Dalian yard, with options for two additional vessels. The ships are priced at around $80m each and are expected to deliver in 2028. If confirmed, this would mark Polaris’ first newbuilding order in several years and add another name to the Dalian yard’s fast-growing dry bulk book.
Vale's Alternative-Fuel Renewal Programme
Splash247 understands the newbuilds are tied to employment with Vale, which is pushing ahead with one of the largest alternative-fuel dry bulk renewal programmes on the water. Industry sources have placed Polaris among three Asian owners selected by Vale for a package of up to 20 triple-fuel newcastlemaxes to be built in China. HMM is said to be lined up for eight ships, with Polaris and Shandong Shipping taking the remaining series.
These ships are part of a wider Vale plan for 30 new ore carriers, including 20 newcastlemaxes and 10 larger VLOCs (very large ore carriers), with long-term employment of more than 25 years. Vale has already moved on the VLOC side: Shandong Shipping has signed a 25-year charter deal for two 325,000 dwt ethanol-trifuel guaibamax vessels at Qingdao Beihai, with options that could lift the series to 10 ships. Those vessels are expected to deliver from 2029 and are priced at about $130m each.
Separately, HMM has disclosed a newbuilding programme covering eight bulk carriers and two VLGCs (very large gas carriers) worth more than $1bn, with deliveries through 2031. Market sources have linked the bulkers to Vale business, though HMM has not publicly named the yard or employment for the bulk carrier portion, with market reports pointing to Chinese construction.
Polaris-Vale Contract History
Polaris has a long relationship with Vale and operates a large VLOC fleet for the miner under long-term charter arrangements. The company said last year it had signed a five-year contract of affreightment with Vale worth about $300m, covering four 210,000 dwt newcastlemaxes on the Brazil-China iron ore route from 2026 to 2031. That contract renewed a similar Vale deal first agreed in 2019.
Polaris originally ordered ships for the earlier Vale work at New Times Shipbuilding and Shanghai Waigaoqiao Shipbuilding, but later sold the vessels to Greek owner Thenamaris as part of balance sheet repair measures. Splash247 reported in 2024 that Thenamaris had taken four 2020- and 2021-built Chinese-built newcastlemaxes from Polaris, helping the Greek owner enter the segment.
Implications for Dry Bulk Shipping
These orders underscore Vale’s commitment to renewing its chartered fleet with alternative-fuel vessels, which will reduce emissions on the vital Brazil-China iron ore trade lane. For freight operators, the long-term charters (25 years for the VLOCs, five-year COA for Polaris) provide revenue visibility for shipowners but also reduce spot market availability of large bulkers, potentially tightening capacity on key routes. The involvement of multiple Asian owners (Polaris, HMM, Shandong) diversifies Vale’s carrier base, while the $80m per newcastlemax price tag reflects the premium for triple-fuel capability.
Watch List
- Delivery timelines for the newcastlemaxes (2028) and guaibamaxes (2029) and their impact on fleet supply.
- Whether Polaris exercises options for the additional two newcastlemaxes.
- Progress of Vale’s overall 30-ore-carrier programme and any further orders.
- HMM’s final selection of shipyard for its eight bulk carriers.
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