HMM secures $3.5 bil. shipping contract with Brazil's Vale
HMM's dry bulk carrier Global Trust / Courtesy of HMM
Korean shipper HMM said Tuesday it has secured a 4.7 trillion-won ($3.5 billion) long-term shipping contract with Brazilian mining giant Vale.
Under the deal, HMM will transport bulk cargo for Vale using eight newly built vessels, which will be delivered sequentially from 2030 and operated under 25-year contracts.
The latest contract marks HMM's third major deal with Vale, following two 10-year long-term shipping contracts signed in May and September last year worth a combined 1.1 trillion won.
The eight 210,000-ton Newcastlemax bulk carriers will be equipped with the world's first tri-fuel propulsion engines capable of running on methanol, ethanol and conventional fuel oil.
The ships will also be built LNG- and ammonia-ready, allowing them to be converted to run on liquefied natural gas or ammonia in the future.
They will also feature environmentally friendly technologies, including rotor sails that harness wind power to assist propulsion, helping improve fuel efficiency and reduce carbon emissions.
The deal comes as HMM seeks to strengthen its bulk shipping business and diversify its portfolio beyond its core container shipping operations.
Its bulk carrier fleet increased to 61 vessels in the first half of this year from 44 at the end of March last year.