South Korean shipping company HMM has signed a long-term shipping contract worth approximately KRW 4.7 trillion ($3.5 billion) with Brazilian mining company Vale for the transportation of iron ore beginning in 2030.

The agreement covers eight 210,000 DWT Newcastlemax bulk carriers, with each vessel contracted for a period of 25 years, HMM said in a statement on its website on Monday. Deliveries of the vessels are scheduled to begin in 2030. Newcastlemax vessels are among the largest bulk carriers able to transit the Panama Canal, a size widely used on long-haul iron ore routes such as Brazil-to-Asia, where Vale is one of the world's top iron ore producers.

The deal marks HMM's third major long-term agreement with Vale, following two 10-year contracts signed in May and September 2025. HMM ordered the eight vessels in June in order to service the latest agreement. Multi-decade contracts of this kind are used in the dry bulk sector to secure stable revenue and provide shipowners the certainty needed to commit to newbuild investment.

The ships will be equipped with tri-fuel engines capable of running on methanol, ethanol, and conventional marine fuels. In addition, the vessels will feature LNG- and ammonia-ready designs as well as rotor sails to improve fuel efficiency. The fuel-flexible design aligns with the shipping industry's broader push to cut greenhouse gas emissions, including the International Maritime Organization's target to reduce emissions from international shipping toward net zero by around 2050, which has driven orders for vessels capable of running on alternative fuels as future fuel availability remains unsettled.

"This long-term contract reaffirms our strong, strategic partnership with a premier global charterer," an HMM spokesperson said.

Source: Ship & Bunker