 The freight rates, down 80% from 2008, were expected to drop further down to the levels of 1977.According to the chief executive of BIMCO, the "Valemax" vessels could displace up to 168 150,000–180,000-ton capesize bulk carriers, around 15% of the existing fleet, from the long haul voyages and force them to less profitable shorter routes.Vale responded to the criticism by stating that the company aims to permanently cut the costs of Atlantic-Pacific dry bulk shipping to make Brazilian ore more competitive against iron ore produced in Australia, which is closer to major customers in Asia.