HMM Continues Growing Dry Bulk as Part of Diversification Strategy
HMM Secures $310 Million Contract with Vale
HMM is making significant strides in diversifying its shipping operations, recently signing a long-term contract with Brazil’s Vale, a global leader in mining. This new agreement, valued at approximately $310 million, will span ten years and commence in the second quarter of 2026, focusing on the transportation of iron ore using five bulk carriers. This contract follows a previous deal with Vale worth over $450 million, solidifying HMM’s commitment to expanding its dry bulk operations.
Strategic Growth Through Diversification
HMM’s strategy emphasizes diversification to achieve balanced growth across various markets. The company aims to stabilize its financial results by expanding its dry bulk operations while maintaining its position as a leading container carrier. The partnership with Vale is expected to provide consistent revenue and stable cargo volumes over the next decade, reinforcing HMM’s long-term growth objectives.
Since 1977, HMM has been active in the dry bulk and construction material sectors, operating a diverse fleet of general cargo vessels ranging from 30,000 DWT Handy to 60,000 DWT Supramax. Currently, the company boasts a fleet of 20 dry bulk carriers, including 7 Capesize, 2 Panamax, 4 Supramax, and 7 Handy vessels. Looking ahead, HMM plans to expand its bulk fleet to 110 vessels, totaling 12.56 million DWT by 2030, as part of its broader strategy to diversify beyond container shipping.
Recently, HMM took delivery of the eco-friendly Ocean Ariel, a 42,000 DWT bulker constructed by Japan’s Tsuneishi Shipbuilding. This versatile vessel is designed to transport major bulk cargoes such as iron ore, grain, and coal, while also accommodating lumber, hot coils, and sulfur, enhancing trade flexibility. Its semi-box-type hold is particularly suitable for transporting steel products, further expanding HMM’s operational capabilities.
Future Investments and Expansion Plans
In addition to its recent contract with Vale, HMM is actively pursuing secondhand dry bulk tonnage following an unsuccessful bid to acquire the bulk operations of South Korea’s SK Shipping. The company launched a new long-term strategy in 2022, committing to invest $10 billion to grow its operations. This ambitious plan aims to nearly double its container capacity to 1.2 million TEU while accelerating growth in the bulker segments.
HMM has also ordered four new multi-purpose vessels and car carriers that will operate under a long-term charter with Hyundai-Glovis. Furthermore, the company is exploring growth opportunities in logistics, with plans to invest in terminals worldwide. As HMM continues to diversify its operations, it remains focused on securing new opportunities for sustainable growth in the shipping industry.
