South Korean shipping company HMM has signed a long-term contract with Brazilian mining company Vale, valued at approximately KRW 4.7 trillion (roughly $3.4bn), to transport iron ore over a 25-year term per vessel, beginning in 2030.

The agreement marks HMM’s third long-term contract with Vale, following two 10-year contracts concluded in May and September 2025, respectively.

To meet the requirements of the new contract, HMM disclosed in June an order for eight newbuild 210,000-DWT Newcastlemax bulk carriers, with sequential deliveries scheduled to begin in 2030.

According to HMM, the vessels will be equipped with tri-fuel propulsion engines capable of operating on methanol, ethanol and conventional bunker fuel. The newbuilds will also be constructed with an LNG- and ammonia-ready design and fitted with rotor sail wind-assisted propulsion systems, designed to maximise fuel efficiency.

An HMM spokesperson said: “This long-term contract reaffirms our strong, strategic partnership with a premier global charterer. We remain committed to strengthening our earnings stability by expanding our portfolio of long-term contracts, while continuing to advance sustainable and high-value fleet operations.”