Hyundai Glovis inks very big car-carrying contract

Hyundai Glovis inked a 2.2 trillion won ($1.58 billion) contract to transport cars for a global automaker.

Hyundai Glovis’ car carrier. [HYUNDAI GLOVIS]

Hyundai Glovis inked a 2.2 trillion won ($1.58 billion) contract to transport cars for a global automaker.

The shipping company announced Wednesday it will be shipping cars to the United States, Europe and Asia between 2023 and 2025. The name of the automaker was not disclosed.

According to Hyundai Glovis, the deal is the biggest sea freight contract ever signed with a single automaker.

The company has been signing various car shipment deals, including one with Volkswagen Group to move the company’s cars between Europe and China through the end of 2024.

It plans to acquire new vessels and private loading spaces in ports worldwide to attract more business.

Hyundai Glovis said it aims to increase its ratio of non-Hyundai Motor deals as its shipping business grows. The company is 20 percent owned by Hyundai Motor Group chairman Euisun Chung and 4.88 percent by Hyundai Motor. When it first started its sea freight business in 2010, it relied on orders from Hyundai Motor and its affiliates.

Only 12 percent of its sea freight contracts were from non-Hyundai Motor companies in 2010, which rose to 61 percent in 2021, up 9 percentage points from the previous year.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]