HMM Signs KRW 4.7 Trillion Long-Term Transportation Contract with Brazil's Largest Mining Company

25-Year Vessel Contracts: Eight 210,000-Ton Bulk Carriers to Be Deployed from 2030
Eco-Friendly High-Efficiency Tri-Fuel Ships Using Methanol, Ethanol, and Heavy Fuel Oil
Fleet Diversification Under CEO Choi Wonhyuk Drives Soaring Bulk Division Profits

HMM has secured a large-scale long-term transportation contract from the largest mining company in Brazil.

On September 8, HMM announced that it had signed a long-term transportation contract with Vale valued at a total of KRW 4.7 trillion.

This contract marks the third major deal between the two companies, following 10-year long-term transportation contracts signed twice with Vale in May and September of last year, which amounted to approximately KRW 1.0665 trillion in total. The contract period for the new deal is 25 years for each vessel, starting in 2030.

To fulfill this contract, HMM previously disclosed in June that it would place a new order for eight bulk carriers.

The vessels, which are scheduled for sequential delivery beginning in 2030, will be Newcastlemax-class bulk carriers equipped with the world’s first tri-fuel engines that can run on methanol, ethanol, and heavy fuel oil.

These vessels will also be built as "LNG/Ammonia Ready" ships, making them possible to retrofit for LNG or ammonia propulsion in the future. In addition, various eco-friendly systems such as "rotor sails"—wind-assisted propulsion devices that help enhance fuel efficiency and significantly reduce carbon emissions—will be installed.

An HMM official stated, "This contract once again demonstrates our solid partnership with a global major shipper. Moving forward, we plan to strengthen a stable profit base and expand our business focused on high profitability and future growth by increasing the proportion of long-term contracts and reorganizing our business portfolio."

Meanwhile, since taking office at the end of March last year, HMM CEO Choi Wonhyuk has worked to strengthen the company’s core container business while rationalizing the bulk business fleet. In particular, he has strategically reduced the proportion of short-term chartering in favor of significantly expanding long-term contracts with large, high-quality customers to secure stable fixed revenue sources. As a result of these improvements in the bulk business, HMM’s bulk division posted operating profit of approximately KRW 240 billion in the first half of this year alone, continuing a sharp upward trend since the fourth quarter of last year.

Diversification of the business portfolio is also now in full swing. The bulk carrier fleet—which previously focused mainly on dry-bulk and tanker vessels—is now being actively expanded to include gas ships, automobile carriers (PCTC), and multipurpose vessels (MPV), broadening the company’s operational scope. As a result, HMM’s bulk carrier fleet increased rapidly from 44 ships at the end of March last year to 61 ships in the first half of this year.

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