South Korean shipping major HMM has signed a long-term iron ore transportation contract with Brazilian mining giant Vale worth approximately KRW 4.7 trillion ($3.4 billion), strengthening its presence in the dry bulk shipping business.
Under the agreement, HMM will transport bulk cargo for Vale using eight 210,000-dwt Newcastlemax bulk carriers. The vessels will be deployed under contracts running for 25 years each from 2030, with deliveries scheduled sequentially from that year.
The latest agreement marks HMM’s third major long-term contract with Vale. The company previously secured two 10-year transportation contracts with the Brazilian miner in May and September 2025, with a combined value of around KRW 1.07 trillion.
HMM had announced in June that it would order eight new bulk carriers to fulfil the latest contract. The vessels will be equipped with tri-fuel propulsion engines capable of operating on methanol, ethanol and conventional bunker fuel, providing greater flexibility in fuel selection.
The ships will also be built to be LNG- and ammonia-ready, allowing them to be converted for alternative fuels in the future. In addition, the vessels will feature rotor sails, which use wind power to assist propulsion and improve fuel efficiency while helping reduce carbon emissions.
The contract forms part of HMM’s broader strategy to expand its dry bulk operations and diversify beyond its core container shipping business. The company has been increasing its bulk fleet and securing long-term transportation agreements as it seeks to build a more stable revenue base through long-duration contracts.
HMM’s bulk carrier fleet had increased to 61 vessels in the first half of 2026, compared with 44 vessels at the end of March 2025. The company has also outlined plans to expand its bulk fleet substantially by 2030.
The latest Vale contract therefore adds a significant long-term commitment to HMM’s growing bulk shipping portfolio, while the use of alternative-fuel-ready vessels reflects the industry’s increasing focus on fuel efficiency and lower-emission maritime transport.
