HMM announced on September 8 that it has signed a long-term transportation contract worth 4.7 trillion won with Brazil's largest mining company, Vale. This follows two contracts worth 1 trillion won secured last year, marking a significant expansion of HMM's stable revenue base in the bulk business.
The contract spans 25 years per vessel, starting in 2030. To fulfill this contract, HMM will deploy eight 210,000-ton Newcastlemax bulk carriers, which were ordered in June. The ships are set to be delivered sequentially beginning in 2030.
The new vessels will be equipped with the world's first tri-fuel propulsion engines capable of using methanol, ethanol, and heavy fuel oil. They will be built in an 'LNG-Ammonia Ready' manner, allowing for future conversion to liquefied natural gas (LNG) or ammonia propulsion.
Additionally, the ships will feature eco-friendly equipment such as rotor sails, which harness wind power to enhance propulsion, maximizing fuel efficiency and minimizing carbon emissions.
This contract is expected to accelerate HMM's efforts to improve its bulk business. Since taking office in late March last year, CEO Choi Won-hyuk has been working to strengthen the competitiveness of the company's core container business while rationalizing the bulk fleet. The strategy involves reducing the reliance on short-term charters and expanding long-term contracts with major shippers to secure stable revenue sources.
In fact, HMM's bulk division reported an operating profit of approximately 240 billion won in the first half of this year, continuing an upward trend since the fourth quarter of last year.
The fleet diversification is also underway. HMM is expanding its business scope beyond dry bulk and tankers to include gas carriers, pure car and truck carriers (PCTC), and multipurpose vessels (MPV). As a result, the bulk fleet has grown from 44 vessels at the end of March last year to 61 vessels in the first half of this year.
An HMM official stated, "This contract once again demonstrates our solid partnership with a global major shipper. We plan to strengthen our stable revenue base through an increased focus on long-term contracts and a reorganization of our business portfolio, aiming for high profitability and future growth."
* This article has been translated by AI.
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