South Korea-based shipping company HMM has signed a KRW 4.70 trillion ($3.5 billion) long-term contract with Brazilian miner Vale for the transportation of iron ore.
Eight bulk carriers to serve Vale for 25 years
Under the agreement, HMM will deploy eight new 210,000 dwt Newcastlemax bulk carriers, with each vessel operating for 25 years after entering service in 2030. The overall contract period will run from April 1, 2030, to October 31, 2056, while Vale will have the option to extend the agreement by up to five years.
The vessels will mainly transport iron ore from Brazil to destinations including China. The final value of the contract may vary depending on exchange rates, fuel prices, shipping routes and vessel operating days.
The latest agreement is HMM's third major long-term contract with Vale, following two 10-year deals signed in May and September 2025 with a combined value of KRW 1.07 trillion ($797 million). Through the new contract, HMM aims to expand its stable revenue base in the bulk shipping segment and reduce its exposure to volatility in the container freight market.
Contract to strengthen Vale's long-term logistics security
For Vale, the agreement will secure dedicated shipping capacity for its iron ore exports over the long term, particularly on the strategically important Brazil-Asia route. The deployment of large-capacity bulk carriers is also expected to improve freight predictability and transportation efficiency, reducing the miner's exposure to fluctuations in the spot charter market.
The contract additionally supports Vale's efforts to lower emissions generated by the maritime transportation of its products. Shipping accounts for a significant portion of the miner's value-chain emissions, and Vale has committed to reducing its Scope 3 emissions by 15 percent by 2035.
