Korea Shipping Corp. Signs 73 Billion Won Long-Term PCTC Charter Contract with Hyundai Glovis

Expanding Long-Term Charter Fleet to Two Vessels
with Acquisition of a Secondhand PCTC

SM Group's shipping affiliate, Korea Shipping Corporation (Korea Shipping Corp.), announced on September 2 that it has signed a long-term charter contract worth 73 billion won with Hyundai Glovis for a Pure Car and Truck Carrier (PCTC).

The contract amount accounts for 5.7% of last year's consolidated sales (1.277 trillion won), and the contract period is set for five years and four months, starting from November. Prior to this, Korea Shipping Corporation plans to purchase one secondhand PCTC to deploy for this contract. As a result, the number of PCTCs that Korea Shipping Corporation will operate on a long-term charter basis for Hyundai Glovis will increase from one to two vessels.

Korea Marine Transport automobile carrier SM Oceanus. SM Group

Korea Shipping Corporation explained that its proven specialized ship management capabilities and strong relationship of trust with Hyundai Glovis, built through ongoing PCTC contracts since 2015, were the basis for winning this new charter. Under this long-term charter contract, Hyundai Glovis is responsible for overall vessel operations while Korea Shipping Corporation manages the vessel and crew. The consistently high quality of its Maintenance, Repair, and Operations (MRO) services delivered over more than ten years has earned positive evaluations.

Korea Shipping Corporation intends to use this opportunity to solidify its stable and steady business structure by focusing on long-term contracts with high-quality shippers. In particular, as exports of automobiles from Asia have soared recently, demand for PCTCs is rapidly growing, and the company expects to expand its related business accordingly.

Additionally, competition over liquefied natural gas (LNG) carriers is intensifying as part of energy supply chain risks arising from situations such as the Middle East war. Korea Shipping Corporation plans to create further growth momentum through additional contracts with major clients such as Korea Gas Corporation.

Minsangki, CEO of Korea Shipping Corporation, stated, "With this new contract with Hyundai Glovis, we have secured a new stable source of revenue while also laying the foundation for expanding our PCTC business. We will continue to respond quickly to global shipping market trends and uncertainties, pursue new businesses that ensure both stability and profitability, and make strategic investments to drive future growth and enhance shareholder value."

This content was produced with the assistance of AI translation services.