South Korean carrier HMM has signed a KRW 4.697tn ($3.50bn) long-term transportation contract with Vale International SA covering eight 210,000-dwt Newcastlemax bulkers, according to a Korea Exchange filing.
The agreement was signed on 7 September and disclosed on 8 September. Its value is equal to 43.13% of HMM’s 2025 consolidated revenue.
Each of the eight vessels will work under the contract for 25 years after entering service in phases from 2030. The filing gives an overall service period from 1 April 2030 to 31 October 2056.
The ships are intended for Vale’s iron ore transportation programme, with Brazil and China among the trading areas covered by the contract. Vale can extend the agreement by up to five years.
The final contract value may change with exchange rates, fuel prices, trading routes, vessel operating days and any change in propulsion fuel. Payments are due within 10 business days after loading on each voyage.
HMM approved the eight-vessel order in June for the Vale employment. The Newcastlemax newbuildings will have tri-fuel propulsion capable of using methanol, ethanol and heavy fuel oil, while also being LNG- and ammonia-ready. They will also be fitted with rotor sails.
The deal is HMM’s third major long-term contract with Vale. Two 10-year agreements signed in May and September 2025 were worth a combined KRW 1.0665tn ($796m). The September agreement was valued at KRW 430bn ($321m) and covered five bulk carriers.
HMM Co Ltd, founded in 1976 and headquartered in Seoul, provides container and bulk shipping services through a network spanning more than 110 countries.
Vale is a Brazilian mining company. Vale International SA is the group entity named as HMM’s contractual counterparty in the filing.