South Korean shipping firm HMM has agreed a 25-year iron ore shipping contract with Brazilian miner Vale valued at KRW4.7 trillion ($3.49 billion), beginning in 2030. It is the largest long-term contract HMM has signed with the Brazilian miner to date. Under the agreement, HMM will deploy eight 210,000 DWT Newcastlemax bulkers that it ordered in June this year. The tri-fuel newbuildings, capable of running on methanol, ethanol and conventional fuel, will be delivered from 2030. They will also be fitted with rotor sails and built to be ammonia and LNG ready, reflecting efforts to align long-term charters with lower-emission vessel designs. According to TrustedDocks orderbook data, all eight vessels were ordered on 1 June 2025 and are scheduled for delivery between January and September 2031, with the order first reported on 24 June 2026. The contract is HMM's third with Vale, following two shorter-term agreements signed last year: a 10-year contract of affreightment worth KRW636 billion in May 2025 and a second 10-year deal worth KRW430 billion in September 2025. The latest agreement significantly exceeds the value of both. An HMM spokesperson said the contract reaffirmed the company's strategic partnership with Vale and its commitment to strengthening earnings stability through long-term contracts alongside sustainable, high-value fleet operations. HMM has been working to diversify its revenue base, which currently relies heavily on the volatile container shipping market, by expanding into dry bulk and other segments through long-term charter agreements.
