HMM signs 4.7 trillion won long-term shipping deal with Vale

South Korean shipping company HMM has signed a major long-term transportation contract with Vale, Brazil’s largest mining company, valued at approximately 4.7 trillion won. This agreement marks the third large-scale contract between the two companies within a year, following two previous 10-year deals totaling roughly 1.06 trillion won.

The contract is set to begin in 2030 and will span 25 years per vessel. To fulfill this agreement, HMM will deploy eight 210,000-ton Newcastlemax-class bulk carriers that were ordered in June. These vessels are designed with advanced eco-friendly features, including triple-fuel engines capable of using methanol, ethanol, and heavy fuel oil, as well as rotor sail wind-assisted propulsion. They are also built to be ‘LNG and ammonia ready’ to allow for future conversions.

Under the leadership of CEO Choi Won-hyuk, HMM has been shifting its strategy toward securing stable, high-profit revenue through long-term contracts with major shippers rather than relying on short-term charters. This strategy has contributed to the bulk division recording an operating profit of approximately 240 billion won in the first half of this year. HMM continues to diversify its fleet, expanding from dry bulk and tankers into gas carriers, pure car and truck carriers (PCTC), and multi-purpose vessels (MPV).