HMM signs $309 mil. shipping deal with Brazil’s Vale

HMM, South Korea’s leading shipping company, announced on Friday that it has finalized a significant transportation agreement worth 430 billion won (approximately $309 million) with Vale S.A., Brazil’s premier mining firm. This strategic partnership will see HMM deploy five bulk carriers to transport iron ore for Vale, the world’s largest producer of iron ore and nickel, over a ten-year period from April 2026 to March 2036.

Expanding Bulk Shipping Operations

This latest contract marks a continuation of HMM’s collaboration with Vale, following a previous agreement worth 636 billion won that was secured in May for iron ore shipping. A spokesperson for HMM emphasized that establishing stable volumes through bulk-carrying contracts is crucial for mitigating fluctuations in the container shipping market and fostering the company’s growth.

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Traditionally focused on container shipping, HMM is now strategically shifting its focus to include bulk carriers and roll-on/roll-off (ro-ro) vessels for vehicle transport. The company has set ambitious goals to expand its bulk fleet from the current 50 vessels to 110 by 2030. Additionally, HMM plans to introduce seven ro-ro ships by the end of next year, marking a significant return to this segment after selling all of its ro-ro vessels in 2002.

Earlier this month, HMM took a notable step by adding the first of the seven planned ro-ro ships to its bulk fleet, signaling its renewed commitment to diversifying its shipping operations after a 23-year hiatus in this area. This strategic pivot not only aims to enhance HMM’s market presence but also positions the company to better navigate the evolving dynamics of the global shipping industry.