Vietnam-based Hoa Phat Group has announced that its subsidiary Hoa Phat Shipping Company has signed a long-term contract of affreightment with Germany-based Olderndorff Shipping Company for the transportation of iron ore to Hoa Phat’s complexes for production.
The contract will help the company actively control sea freight rates in the context of volatile freight rates globally. In addition, by signing a contract to transport iron ore with Oldendorff, Hoa Phat has stabilized freight prices in the case of large fluctuations in freight rates.
Meanwhile, Hoa Phat Shipping Company directly owns a fleet of three vessels with a capacity of 80,000-90,000 mt for transporting bulk cargo, serving part of the demand for transporting coal and ore materials for Hoa Phat Group.
Especially, when the phase 2 of Dung Quat Hoa Phat Steel Integrated Complex project is completed, Hoa Phat Group’s demand for imported production materials will increase sharply.