Pan Ocean signs $81m iron ore transport deal with Vale

South Korean shipping line Pan Ocean has signed a long-term cargo transportation contract with Vale International to transport iron ore from Brazil to China and other countries. The contract, which was signed on August 25, 2025, is valued at approximately KRW113.6 billion ( $81 million).

The five-year contract is scheduled to commence on October 1, 2026, and run until September 30, 2031. The company noted that the start date is contingent on the expected delivery of the single, dedicated iron ore carrier that will be used for the service. The start and end dates of the contract 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 with Vale and the estimated transport volume over the five-year period. According to the filing, this total amount may fluctuate in the future due to market variables such as exchange rates and oil prices.

The contract represents 2.2 per cent of Pan Ocean's most recent annual sales, which were based on its consolidated financial statements for 2024.