South Korean shipping major HMM has signed a long-term transportation contract worth approximately USD 3.5 billion (KRW 4.7 trillion) with Vale, Brazil’s largest mining company, strengthening its presence in the dry bulk sector.
Under the 25-year contract, HMM will transport iron ore from 2030, with each vessel committed for a period of 25 years. The company plans to deploy Newcastlemax bulk carriers equipped with advanced technologies aimed at improving fuel efficiency and reducing greenhouse gas emissions.
The vessels will feature triple-fuel engines capable of operating on methanol, ethanol and conventional bunker fuel. They will also incorporate an “LNG & Ammonia Ready” design, allowing for future adoption of alternative fuels, along with Rotor Sail wind-assisted propulsion technology to further enhance energy efficiency.
The agreement is expected to provide HMM with a stable long-term revenue base while supporting Vale’s efforts to secure reliable and more environmentally sustainable iron ore transportation.
HMM said it will continue to expand its portfolio of long-term contracts and pursue businesses with high returns and strong future growth potential, while accelerating its transition toward greener shipping.