Hyundai Glovis signs $796 million shipping deal with global automaker

Hyundai Glovis Co., the logistics unit of South Korea’s Hyundai Motor Group, said on Friday 11 Nov  it has clinched a 1.05 trillion won ($796 million) deal to ship vehicles for a global automaker.

Under the contract, Hyundai Glovis will deliver vehicles for the unidentified carmaker for sale in Europe over the next two years from 2023, the Korean company said in a regulatory filing.

It didn’t provide details, citing a confidentiality agreement.

The contract represents 4.8% of Hyundai Glovis’ annual sales revenue.

The latest deal follows the company’s 2.2 trillion won order for vehicle shipping from another non-Korean carmaker in September.

Under the September deal, its record-high vehicle delivery contract, Hyundai will ship the unidentified carmaker’s vehicles to Europe, the US and Asia for three years from next year.

The company has been striving to broaden its client base to non-Hyundai Group units. Previously, Hyundai Glovis received most of its orders from its affiliates Hyundai Motor Co. and Kia Corp.

Only 12% of its vehicle shipping orders were from outside the Hyundai Motor Group in 2010 but the ratio increased to 61% in 2021.

Hyundai Glovis, which operated 83 car-shipping vessels at the end of September, plans to expand its fleet to as many as 90 ships by the end of 2023.

“We expect seaborn traffic to increase from the fourth quarter as global carmakers churn out more vehicles on the back of an easing automotive chip shortage,” said a Hyundai Glovis official.