Norway’s car carrier operator Wallenius Wilhelmsen has secured two multi-year shipping deals valued at around $263m and $112m each, with large auto original equipment manufacturers (OEMs), both including biofuel.
The operator didn’t disclose the names of the companies, but it said that both contracts are “with leading” auto OEMs and span over multiple years.
“The contracts are a great testament to our customers’ commitment to ensuring more sustainable freight,” said Pia Synnerman chief customer officer at Wallenius Wilhelmsen.
The first is a three-year shipping contract and it is valued at around $263m over the contract period based on the assessed volume. This contract adopts Wallenius Wilhelmsen’s re-engineered bunker adjustment factor, BAF2.0, for the Asia to North America trade lane.
The second is a two-year shipping contract and the value is approximately $112m for the contract period based on the agreed volume. The contract includes a fixed surcharge for biofuel use.
Rates are in line with current market levels. The contracts will start in January and April 2025 respectively.
“These agreements add to our contracted book of business and are a great testament to our customers’ commitment to ensuring more sustainable freight by investing in the use of biofuel when transporting their cars with us. We are dependent on forward-leaning customers who join us on the path to net-zero,” added Synnerman.
Wallenius Wilhelmsen group operates around 125 vessels servicing 15 trade routes to six continents, a global inland distribution network, 66 processing centers and eight marine terminals.
