HMM, South Korea’s leading shipping company, has signed a long-term shipping contract worth approximately KRW 4.7 trillion with Vale, Brazil’s largest mining company. The contract begins in 2030 and runs for 25 years per vessel.
South Korea’s leading shipping company HMM has signed a long-term shipping contract worth KRW 4.7 trillion with Vale, Brazil’s largest mining company. This is HMM’s third large-scale order following last year, as it seeks to secure a stable source of revenue.
HMM will allocate 8 newly ordered bulk carriers to the contract, which begins in 2030. It said the contract term for each vessel will be 25 years.
The new vessels will be equipped with the world’s first tri-fuel propulsion engines and designed to allow future conversion to liquefied natural gas- or ammonia-powered vessels. They will also feature wind-assisted propulsion systems, or rotor sails, to improve fuel efficiency and reduce carbon emissions.
HMM has been increasing the number of vessels in its fleet by expanding its dry bulk division into car carriers and multipurpose vessels while increasing the proportion of long-term contracts and reorganizing its business portfolio. Through these efforts, it aims to improve the performance of its dry bulk division and secure a stable source of fixed revenue.