South Korea's largest shipping company HMM Co has signed a KRW430 billion (US$309 million) contract with Brazil's Vale SA to transport iron ore over a 10-year period, reports Yonhap News.

Under the agreement, HMM will deploy five bulk carriers to move iron ore from April 2026 to March 2036 for Vale, the world's leading producer of iron ore and nickel.

The deal follows a 636 billion-won contract signed in May with Vale, as HMM seeks to secure stable bulk volumes to offset volatility in the container-shipping market.

A company spokesman said the long-term contracts will support growth and reduce exposure to fluctuations in container demand.

HMM currently operates 90 container carriers but plans to expand into bulk and roll-on/roll-off (ro-ro) vessels for vehicle transport. The company aims to grow its bulk fleet from 50 to 110 vessels by 2030.

It also plans to add seven ro-ro ships by the end of next year. HMM exited the ro-ro segment in 2002 but re-entered earlier this month with the delivery of the first of the seven planned vessels.