HMM signs $309 mil. shipping deal with Brazil's Vale
An HMM bulk carrier / Courtesy of HMM
HMM, South Korea's largest shipping company, said Friday it has signed a 430 billion-won ($309 million) transportation deal with Vale S.A., Brazil's top mining company.
Under the agreement, HMM will deploy five bulk carriers to transport iron ore for Vale, the world's biggest producer of iron ore and nickel, from April 2026 to March 2036, the company said in a press release.
The latest 10-year deal follows a 636 billion-won iron ore shipping contract HMM clinched with Vale in May.
"Securing stable volumes of bulk-carrying contracts will help offset volatility in the container-shipping market and support growth," a company spokesperson said.
HMM, which operates 90 container carriers, has mainly focused on container shipping but plans to expand into bulk ships and roll-on/roll-off (ro-ro) vessels for vehicle transport in the coming years.
The company said it aims to expand its bulk fleet to 110 vessels by 2030 from the current 50, while adding seven ro-ro ships by the end of next year.
HMM sold all of its ro-ro ships in 2002, but earlier this month, it added the first of the seven planned vessels to its bulk fleet, marking its return to the segment after 23 years.