Pan Ocean and Korea Line have signed two new long-term contracts with POSCO Flow, with a total value of 167.75 billion won (equivalent to 123.6 million dollars). These contracts are designed for the transportation of raw steel materials to South Korea and include the transport of iron ore and coal from various countries.
Details of the Pan Ocean Contract
The larger contract between Pan Ocean and POSCO Flow is valued at 95.83 billion won (70.7 million dollars) and includes the transport of iron ore and coal from Australia, Canada, and other sources to South Korea. This contract will commence on October 20, 2026, and will continue until August 30, 2030. Additionally, the parties may extend this contract for another 14 months.
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Details of the Korea Line Contract
Korea Line has also signed another contract worth 71.92 billion won (52.94 million dollars) with POSCO Flow, which includes the transport of iron ore and coal from Australia, Canada, and Brazil to South Korea. This contract will start on October 9, 2026, and will continue until January 19, 2030, with a possibility of a one-year extension by mutual agreement.
According to Korea Line, this contract is expected to account for 5.63 percent of the company's total revenue in 2025. These contracts reflect Korea Line's long-term business trend. Last month, the company secured a charter for a cargo ship with the Chinese company Zhejiang Shipping worth 42.08 billion won (31.38 million dollars), which will continue until around October 2029. Additionally, the company has recently collaborated with Hyundai Glovis in the recruitment of PCTC ships.
Pan Ocean's Development Steps
Pan Ocean is also adding contractual revenues along with expanding its fleet. The company has recently leased a VLCC to Trafigura Maritime Logistics for three years, with a contract value of 148.18 billion won (109.6 million dollars) and an estimated gross rate of about 100,000 dollars per day.
These two new contracts between Pan Ocean and Korea Line with POSCO Flow demonstrate the ongoing efforts of these companies to expand their activities in the raw steel material transportation market to South Korea and could have a significant impact on their future revenues.
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