HMM signs 430 bln-won shipping deal with Brazil’s Vale
HMM Secures Major Shipping Deal with Vale
SEOUL, Sept. 12 (Yonhap) — HMM Co., South Korea’s leading shipping company, has announced a significant transportation agreement with Vale S.A., Brazil’s premier mining firm. The deal, valued at 430 billion won (approximately US$309 million), will see HMM deploy five bulk carriers to transport iron ore for Vale from April 2026 to March 2036. This latest contract builds on a previous agreement worth 636 billion won that HMM secured with Vale in May.
Strategic Expansion into Bulk Shipping
The new 10-year contract is part of HMM’s strategy to stabilize its operations amid fluctuations in the container shipping market. A company spokesperson emphasized that securing consistent bulk-carrying contracts is essential for mitigating market volatility and fostering growth. Currently, HMM operates a fleet of 90 container carriers but is actively looking to diversify its offerings.
In line with its expansion plans, HMM aims to increase its bulk fleet from 50 to 110 vessels by 2030. Additionally, the company is set to introduce seven roll-on/roll-off (ro-ro) ships for vehicle transport by the end of next year. This marks a notable shift for HMM, which sold all its ro-ro ships back in 2002. Earlier this month, the company took a significant step by adding the first of the seven planned vessels to its bulk fleet, marking its return to this segment after a 23-year hiatus.
Future Outlook and Market Position
HMM’s strategic pivot towards bulk shipping and vehicle transport reflects a broader trend in the shipping industry, where companies are seeking to diversify their services to remain competitive. By securing long-term contracts with major players like Vale, HMM is positioning itself to better navigate the challenges of the shipping market. The company’s commitment to expanding its fleet and service offerings underscores its ambition to enhance its market presence and operational resilience.
As HMM continues to evolve, industry observers will be watching closely to see how these developments impact its overall performance and market share in the coming years.
