HMM Signs 430 Billion KRW Long-Term Transportation Contract with Brazil's Vale

HMM announced on September 12 that it has signed a long-term transportation contract worth 430 billion KRW with Vale, Brazil's largest mining company.

This contract is the second following a 10-year, 636 billion KRW long-term transportation agreement signed with Vale in May. The contract period is 10 years, from 2026 to 2036. HMM plans to deploy a total of five vessels to transport iron ore.

Bulk carriers often operate under long-term contracts of five years or more, which can help mitigate the earnings uncertainty associated with the highly volatile container shipping segment. HMM operates dry bulk carriers that transport iron ore and coal, as well as tankers that carry crude oil and petrochemical products. The company also meets diverse needs with heavy-lift vessels (MPVs) for special cargo and liquefied natural gas (LNG) carriers.

The company plans to expand its bulk carrier fleet to 110 vessels by 2030. Notably, of the seven car carriers ordered in 2023, the first vessel was delivered earlier this month and the rest will be deployed to the market sequentially through next year. This marks HMM's return to the car carrier market for the first time in 23 years since selling the business in 2002. In addition, the company plans to secure four multipurpose vessels (MPVs) and two chemical product carriers (MR tankers) by next year as well.

An HMM official stated, "As part of diversifying our business portfolio, we plan to continuously expand the bulk segment alongside our core container business," adding, "Through this, we aim to ensure sustainable profit generation and growth."