Hoa Phat Group bought two large vessels for coal and iron ore transport

By the end of February 2021, Hoa Phat Shipping Joint Stock Company bought and received two large and modern engine system vessels with a tonnage of 90,000 tons. These ships which were built in Japan will serve for the group’s transport of coal and iron ore.

As the market is in the bottom of the COVID-19 pandemic, Hoa Phat has taken the opportunity to buy vessels at very good prices. The bulk cargo vessels can carry a variety of materials such as steel, cement, clinker, agricultural products and fertilizers etc.

Hoa Phat Group has a huge quantity of goods. Each year, it needs to import tens of millions of tons of raw materials such as iron ore, coal, limestone, scrap both inside and outside the country for production. This is a great advantage for Hoa Phat to own ships and participate in the shipping industry, optimizing shipping costs.

With a tonnage of up to 90,000 tons, this large size vessel will help Hoa Phat be proactive in transporting raw materials for production and business

Hoa Phat Shipping Joint Stock Company is responsible for chartering of all orders for the group's FOB buying and CFR selling, and at the same time receiving commercial orders from the market. The vessels would help the company improve economic efficiency, ensure the quantity of ships in peak periods, and reduce the risk of freight charges when having a price rise. In fact, since the Tet (Lunar New Year), the market has been in lack of vessels, making the freight of Kamsarmax vessel doubled.

Mr. Doan Quang Thinh, Director of Hoa Phat Shipping Joint Stock Company, said: "The operation of the vessels will be flexible according to the market situation. In the near future, we have a plan to buy more ships to serve the Dung Quat 2 project as the demand for importing machinery, equipment and production materials of Hoa Phat will be increased 2 to 3 times compared to the present ".

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