Thursday, September 16, 2010

Multi Million Dollar Bulk Shipping Contract Agreed

Korean Companies Keep it in the Family
Shipping News Feature

SOUTH KOREA – POSCO, the Pohang Iron and Steel Company, is not a name familiar to many shipping companies yet virtually any commercial vessel built in the country’s shipyards, whether they be container vessel or bulk carrier, is liable to have been constructed from steel plates supplied by this, the world’s second or third largest steel processor dependant on how you measure their success.

This week the company, fully privatised now for the past ten years, announced that not only had they commenced operations at their first US plant, supplying finished steel to Asian and European car makers at a rate of up to 120,000 tonnes per annum, but that they have signed a deal with another Korean giant, STX Pan Ocean the county’s leading bulk shipping line, for importing coking coal and iron ore from Australia for the next twenty years.

Commencing in May next year a capsize vessel will be dedicated to the route for twenty years, moving 1.82 million tonnes a year in a contract worth $430 million. In the past few months STX Pan Ocean have gained two other long term (10 year) contracts shipping coal, together worth several hundred million dollars in freight charges.