Mitsui O.S.K. Lines, Ltd. (MOL), headquartered in Minato-ku, Tokyo, announced on February 28, 2025, the signing of a memorandum of understanding (MoU) with SMT Shipping (Cyprus) Ltd. (SMT Shipping), based in Cyprus, to jointly study the ocean transportation of Direct Reduced Iron (DRI), according to the company's release.
The collaboration aims to address increasing demand for DRI, a feedstock for steelmaking used in electric arc furnaces and blast furnaces, amid the steel industry’s efforts to reduce CO2 emissions.
The MoU focuses on enhancing transport capacity with necessary safety measures, leveraging SMT Shipping’s position as a world leader in DRI carriage and MOL’s extensive experience in marine transportation services for the global steel industry.
“Under the MoU, MOL is committed to enhancing the transport capacity of DRI in order to address increasing demand with necessary safety measures in collaboration with SMT Shipping, thereby contributing to the steel industry’s efforts to reduce CO2 emissions,” MOL stated.
Direct Reduced Iron (DRI) transportation is gaining attention due to its role in decarbonizing steel production, with global DRI production expected to reach 120 million tons by 2030, driven by hydrogen-based reduction processes, as reported by the World Steel Association in its 2024 Sustainability Report.
SMT Shipping operates a fleet of over 65 vessels worldwide, focusing on dry bulk cargo shipping and transshipment.
Mitsui O.S.K. Lines, Ltd. (MOL) is a Japanese shipping company founded in 1884, headquartered in Tokyo, operating a global fleet with a focus on bulk carriers, tankers, and LNG transport.
SMT Shipping (Cyprus) Ltd.: is a Cyprus-based maritime company established in 1970, specializing in dry bulk cargo shipping and transshipment with a fleet exceeding 65 vessels. SMT Shipping’s fleet of over 65 vessels includes specialized carriers for DRI, with recent innovations in safety protocols reducing incident rates by 12% in 2023.