HMM signs $3.5 billion long-term shipping contract with Vale

Korean shipping company HMM has secured a 4.7 trillion-won ($3.5 billion) long-term shipping contract with Brazilian mining company Vale, expanding its involvement in the transportation of bulk commodities.

Under the agreement, HMM will transport bulk cargo for Vale using eight newly built vessels. The ships are scheduled for sequential delivery from 2030 and will operate under 25-year contracts.

Eight Newcastlemax vessels to enter Vale service

The eight vessels will be 210,000-tonne Newcastlemax bulk carriers designed for long-haul commodity transportation.

The ships will be fitted with tri-fuel propulsion engines capable of operating on methanol, ethanol and conventional fuel oil. They will also be built with LNG- and ammonia-ready systems, allowing for potential conversion to these fuels as propulsion technologies and bunkering infrastructure develop.

The vessels will incorporate additional technologies aimed at reducing fuel consumption and emissions, including rotor sails. These systems use wind energy to provide supplementary propulsion, potentially reducing the main engine’s fuel requirements during suitable operating conditions.

Third major HMM-Vale contract

The latest agreement is HMM’s third major long-term shipping contract with Vale.

The two companies previously signed 10-year shipping contracts in May and September 2025, with a combined value of approximately 1.1 trillion won.

The latest agreement substantially increases the scale and duration of their commercial relationship, with the new vessels scheduled to operate for Vale for 25 years.

HMM expands bulk shipping operations

The Vale contract comes as HMM continues to expand its bulk shipping business and reduce its reliance on container shipping.

HMM’s bulk carrier fleet reached 61 vessels in the first half of 2026, compared with 44 vessels at the end of March 2025.

The expansion forms part of the company’s broader effort to diversify its shipping portfolio across different cargo segments.