Korea Line signs W72b freight deal with Posco Flow

Korea Line, the shipping affiliate of SM Group, said Thursday it signed a long-term freight transport contract worth 72 billion won ($53.1 million) with Posco Flow, the integrated logistics arm of Posco Group.

The contract value represents 5.63 percent of Korea Line's consolidated revenue of 1.28 trillion won last year. The agreement runs for three years and three months, starting this month through January 2030. Under the deal, Korea Line will transport steelmaking raw materials — including iron ore and coal — from Australia, Canada and Brazil to South Korea.

The contract follows recent deals Korea Line struck with Hyundai Glovis for a 73 billion won pure car and truck carrier agreement and with China's Zhejiang Seacon Shipping for a 42 billion won long-term bulk carrier charter, underscoring the company's steady earnings momentum.

"By securing the Posco Flow cargo in succession, we have strengthened a stable revenue base centered on long-term contracts amid uncertainty and volatility in the global shipping market," a Korea Line official said.

Korea Line and its subsidiary Korea Line LNG operate a combined fleet of 32 dedicated vessels, providing transport services to major domestic and international shippers. The string of long-term contract wins has helped the company cut its debt ratio to 64 percent as of the second quarter this year.

Meanwhile, Korea Line has contributed development funds to Korea Maritime and Ocean University in Mokpo every year since 1987 — marking its 40th consecutive year of support this year — as part of broader corporate social responsibility efforts across various fields.