HMM Continues Diversification with $3.5B Ore Deal with Vale

HMM bulk carrier — HMM is increasing its diversification with contracts such as the 25-year deal to transport ore for Vale (HMM)

HMM is continuing its efforts to diversify its shipping operations, with a focus on growing its bulk shipping segment to provide more stable earnings for the corporation. It announced its third major shipping deal with Brazilian mining giant Vale, with the new contract calling for 25 years of shipping valued at $3.5 billion.

The new long-term shipping contract will start in 2030. It follows a contract signed in September 2025 for 10 years between 2026 and 2036 valued at $320 million. The first contract was signed in May 2025 for 10 years and was valued at $475 million. HMM previously said it would deploy five vessels to transport iron ore.

To service the new contract, HMM reported it ordered eight 210,000 dwt Newcastlemax bulk carriers in June. The vessels will begin delivery in 2030 and be assigned to transport ore for Vale. The ships will feature tri-fuel propulsion engines capable of operating on methanol, ethanol, and bunker fuel in keeping with Vale’s efforts at reducing carbon emissions. HMM reports the vessels will also be built LNG- and ammonia-ready and fitted with rotor sail wind-assisted propulsion.

“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,” said a spokesperson for HMM.

Under the leadership of President Choi Won-hyuk, who took office in March 2025, HMM has been aggressively pursuing its diversification strategy. In addition to the ongoing expansion of its container capacity, the company said it plans to expand its bulk fleet to 110 vessels, representing 12.56 million dwt, by 2030. Media reports highlight that the company has already grown its bulk fleet from 44 vessels when Choi became president to 61 vessels as of the middle of 2026.

BusinessKorea reports that HMM’s profitability from its bulker operations is also improving. Profits have been steeply increasing since the fourth quarter of 2025 for the division, with the company reporting an operating profit from its bulk operations of $179 million for the first half of this year.

HMM has also added gas carriers, car carriers, and multipurpose vessels as part of the diversification strategy. It also exceeded a container capacity of 1 million TEU and has 36 additional containerships on order.