HMM is accelerating the diversification of its business structure, which has been centered on container ships, by signing a long-term transport contract with Vale, Brazil’s largest mining company.
HMM announced on Sept. 12 that it has signed a 430 billion won long-term transport contract with Vale, Brazil’s largest mining company. This is the second contract following the 10-year long-term transport contract worth 636 billion won signed in May. The term of this contract is also 10 years, from 2026 to 2036, and HMM plans to deploy a total of five vessels to transport iron ore.
This contract has given further momentum to HMM’s efforts to diversify its business through the expansion of its bulk carrier operations. Bulk carriers often enter into long-term contracts of five years or more, which can help mitigate the revenue uncertainty in the container sector, which is subject to significant market volatility. An HMM official explained, “Cooperation with global large-scale shippers like Vale enables continuous revenue generation based on stable cargo volumes.”
HMM plans to expand its bulk carrier fleet to 110 vessels (12.56 million DWT) by 2030, aiming to pursue balanced growth between containers and bulk, and explore opportunities for new business ventures. Bulk carriers require specialized vessels and transport capabilities depending on the type of cargo, and HMM is responding to various market demands by securing or planning to secure dry bulk carriers for iron ore and coal, tankers for crude oil, multi-purpose vessels (MPV) for special cargo, and LPG carriers.
In particular, HMM received the first of seven car carriers ordered in 2023 earlier this month, re-entering the car transport market after 23 years, which is expected to further strengthen its competitiveness in the bulk sector.
An HMM official stated, “As part of our business portfolio diversification, we plan to continuously expand the bulk sector along with our main container business,” adding, “Through this, we intend to maintain continuous revenue generation and growth.”
Source: BusinessKorea