Daehan Shipping, a subsidiary of SM Group, announced it has signed a long-term cargo transport contract worth 720 billion won with Posco Flow, a logistics company under the Posco Group.
The contract amount represents 5.63% of Daehan's consolidated revenue of 1.277 trillion won last year. The contract period begins this month and extends until January 2030. Under this agreement, Daehan Shipping will transport iron ore and coal, essential raw materials for steelmaking, from Australia, Canada, and Brazil to South Korea.
Recently, Daehan Shipping has also secured contracts for a 730 billion won vehicle carrier (PCTC) with Hyundai Glovis and a 420 billion won long-term bulk carrier contract with Zhejiang Shipping, maintaining a steady and robust performance.
With the addition of Posco Flow's cargo, Daehan Shipping is establishing a stable revenue base focused on long-term contracts amid uncertainties and fluctuations in the global shipping market.
Daehan Shipping and its subsidiary, Daehan Shipping L.N.G., operate a fleet of 32 large dedicated vessels, providing transport services to reputable clients both domestically and internationally. As a result of these ongoing long-term contracts, the company has improved its financial health, reducing its debt ratio to 64% as of the second quarter of this year, which is among the best financial structures in the domestic shipping industry.
* This article has been translated by AI.
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