Seatrade Maritime: HMM inks 10-year bulk deal with Vale

South Korea shipowner inks its second long-term Contract of Affreightment (COA) with the Brazilian miner this year.

As HMM looks to diversify its business to hedge the volatility of container shipping it has inked a 10-year COA with Vale.

The COA is valued at KRW430 billion ($309.6 million) and covers the use of five bulk carriers to transport iron ore between Q2 2026 and Q1 2036.

The latest COA follows a similar 10-year deal between HMM and Vale in May this year valued at KRW636 billion.

“This strategic partnership with Vale is expected to provide stable cargo volumes and consistent revenue for HMM over the next decade,” the company said.

Signing COA’s for dry bulk shipping is part of a move by HMM to diversify its business from container shipping given the uncertain trade conditions and volatility in that market. The company said that it plans to expand its bulk fleet to 110 vessels with a total of 12.56 million dwt by 2030.

An HMM official said, “Through portfolio diversification, we aim to achieve balanced growth across various markets and secure new opportunities for long-term growth.”