Korea Line Corporation Signs KRW 72 Billion Long-Term Cargo Transportation Contract with POSCO FLOW

[Financial News] Korea Line Corporation, SM Group's shipping affiliate, is strengthening its stable revenue base by signing a long-term cargo transportation contract with POSCO FLOW.
Korea Line Corporation said on the 1st that it had signed a KRW 72 billion long-term cargo transportation contract with POSCO FLOW, the integrated logistics company of POSCO Group.
The contract value is equivalent to 5.63% of last year's consolidated revenue of KRW 1.277 trillion. The contract runs for three years and three months, from this month through January 2030. Under the agreement, Korea Line Corporation will transport iron ore and coal from Australia, Canada and Brazil to Korea.
Korea Line Corporation recently signed a KRW 73 billion long-term vessel charter contract for pure car and truck carriers (PCTCs) with Hyundai Glovis. It also entered into a KRW 42 billion long-term bulk carrier charter contract with Chinese Zhejiang Shipping. With the POSCO FLOW agreement, the company has secured additional long-term contracted volumes to help it respond to fluctuations in the shipping market.
Long-term contracts provide a basis for improving revenue predictability by securing transportation volumes or vessel charter income for a set period. Korea Line Corporation plans to build a stable business foundation through a series of contracts despite uncertainty and market volatility in the global shipping industry.
Meanwhile, Korea Line Corporation and its subsidiary Korea Line LNG operate a dedicated fleet of 32 vessels in total and provide transportation services to major domestic and overseas shippers. Korea Line Corporation's debt ratio fell to 64% in the second quarter of this year.
[email protected] Jung Won-il Reporter