South Korea's Pan Ocean Signs $81 Million Long-Term Iron Ore Shipping Contract with Vale

Pan Ocean's Pan Delight ship (Photo: Pan Ocean / Phaata)

South Korean shipping line Pan Ocean has just announced the signing of a long-term contract of affreightment with Vale International, one of the world's largest mining groups. The contract is for the transportation of iron ore from Brazil to China and other countries.

The agreement was signed this past Monday, August 25, 2025, with a total estimated contract value of approximately KRW 113.6 billion (equivalent to USD 81 million).

Under the terms, the contract will have a duration of five years, tentatively scheduled to begin on October 1, 2026, and run until September 30, 2031. However, Pan Ocean noted that this start time is dependent on the expected delivery schedule of a single dedicated iron ore carrier that will be used to service the contract. Therefore, the contract's start and end dates may change depending on the vessel's final delivery schedule.

The contract value of approximately $81 million was calculated based on the unit price agreed upon with Vale and the estimated transport volume over the five-year period. According to the public filing, this total amount may fluctuate in the future due to the influence of market variables such as exchange rates and oil prices.

In terms of scale, this contract represents 2.2% of Pan Ocean's most recent annual revenue, based on the company's consolidated financial statements for the year 2024.

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Source: Phaata.com (According to Baird Maritime)

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