South Korean based shipping conglomerate HMM has announced that it has signed a long-term shipping contract valued at approximately KRW 4.7 trillion (About USD 3.49b) with Brazilian mining company Vale.
Under the contract terms agreed, HMM will transport iron ore starting in 2030, with a contract term of 25 years per vessel. This marks HMM’s third major long-term contract with Vale, following two 10-year contracts secured in May and September 2025.
To service the new contract, HMM disclosed in June an order for eight new 210,000 DWT Newcastlemax bulk carriers which are scheduled for sequential delivery beginning in 2030.
The Newcastlemax vessels will feature tri-fuel propulsion engines capable of operating on methanol, ethanol, and bunker fuel. Furthermore, the vessels will be built with an ‘LNG and Ammonia Ready’ design and fitted with ‘Rotor Sail’ wind-assisted propulsion systems to maximize fuel efficiency.
A HMM spokesperson says that “This long-term contract reaffirms our strong, strategic partnership with a premier global charterer,” and the spokesperson adds that “We remain committed to strengthening our earnings stability by expanding our portfolio of long-term contracts, while continuing to advance sustainable and high-value fleet operations.”
