HMM Continues Growing Dry Bulk as Part of Diversification Strategy
HMM continues to take steps designed to execute on its strategy of diversification of its shipping operations. While the company continues its role as a leading container carrier, it is also following a strategy to expand its dry bulk operations as a means of stabilizing its financial results.
The company announced the signing of a new long-term contract of affreightment (COA) with Brazil’s Vale, one of the world’s largest mining companies. Valued at approximately $310 million, the contract is for ten years, starting in the second quarter of 2026, for the transport of iron ore using five bulk carriers. It follows a similar 10-year contract completed in May with Vale valued at more than $450 million.
“Through portfolio diversification, we aim to achieve balanced growth across various markets and secure new opportunities for long-term growth,” HMM reported while announcing the new contract. It is the strategic partnership with Vale is expected to provide stable cargo volumes and consistent revenue over the next decade.
The company highlights it has been active in the dry bulk and construction material sectors since 1977 and today operates general cargo vessels in various sizes from 30,000 DWT Handy to 60,000 DWT Supramax worldwide, including in the Americas, the Middle East, and Europe. Its current fleet list shows a total of 20 dry bulk carriers: 7 Capesize, 2 Panamax, 4 Supramax, and 7 Handy.
HMM highlights that it plans to expand its bulk fleet to 110 vessels (12.56 million DWT) by 2030, as part of its strategy to diversify beyond container shipping and pursue new growth opportunities.
As part of this strategy, the company recently took delivery of the eco-friendly Ocean Ariel, a 42,000 dwt bulker built by Japan’s Tsuneishi Shipbuilding. The shipbuilder highlights that it is a versatile design primarily for the three major bulk cargoes of iron ore, grain, and coal, but it can also carry lumber, hot coils, and sulfur, allowing for greater trade flexibility. It uses a semi-box-type hold that is also suitable for transporting steel products.
HMM, according to reports, is also pursuing secondhand dry bulk tonnage after it failed in its bid to acquire the bulk operations of South Korea’s SK Shipping.
The company in 2022 launched its new long-term strategy, reporting it would invest $10 billion to grow its operations. Its objective is to nearly double its container capacity to 1.2 million TEU while accelerating growth in the bulker segments. It has also ordered four new multi-purpose vessels and ordered car carriers that will operate under a long-term charter to Hyundai-Glovis. The company is also seeking growth in logistics, with reports that it is planning investments in terminals around the world.