HMM has signed a long-term contract of affreightment (COA) with Brazil’s Vale, valued at KRW430bn ($309m). This is the second contract signed between the two companies, following a KRW 636bn, 10-year deal concluded in May. Under the new agreement, HMM will transport iron ore using five bulk carriers over a 10-year period starting next April.

HMM plans to expand its bulk fleet to 110 vessels (12.56m dwt) by 2030, as part of its strategy to diversify beyond container shipping and pursue new growth opportunities.

The closer ties with Vale, the world’s largest iron producer, come at a time when POSCO, South Korea’s top steel mill, is being tipped to lodge a takeover for HMM.