Korea Line (005880.KS), the shipping arm of SM Group, said on the 1st that it has signed a long-term cargo transport contract with POSCO FLOW, the logistics unit of POSCO Group. The deal is worth 72 billion won ($51.7 million), equal to 5.63% of the company's consolidated revenue of 1.277 trillion won last year. The contract runs for three years and three months, from this month through January 2030.
Under the agreement, Korea Line will ship iron ore and coal mined in Australia, Canada and Brazil to South Korea. The raw materials are used in POSCO's steelmaking operations.
Korea Line earlier signed a 73 billion won long-term charter contract for a pure car and truck carrier with Hyundai Glovis (086280.KS) and a 42 billion won bulk carrier charter deal with China's Zhejiang Shipping. Including the POSCO FLOW volume, the company said it has secured 187 billion won in solid contracts, building a stable earnings base amid uncertainty in the global shipping market.
Korea Line and its subsidiary Korea Line LNG currently operate a fleet of 32 dedicated vessels. The company lowered its debt-to-equity ratio to 64% as of the second quarter of this year, maintaining a stable financial structure.
