Wallenius Wilhelmsen lands lucrative contracts worth $1.2 billion
Oslo-listed Wallenius Wilhelmsen has sealed two contracts worth over $1.2 billion with an unnamed global construction and mining equipment manufacturer and one of the largest automotive distributors in the Americas.
The first multi-year shipping contract, valued at approximately $1 billion based on expected volumes is valid for three years with an optional two-year extension. The renewed partnership, initiated in November 2023, reflects adjusted rates in line with prevailing market conditions.
In parallel, Wallenius Wilhelmsen has inked a multi-year shipping deal with a major automotive distributor in the Americas. This two-year contract, valued at approximately $200 million, commenced early in 2024, featuring rates aligned with current market dynamics.
The company revealed that both contracts include ‘direct support for Wallenius Wilhelmsen’s decarbonization initiatives, such as the use biofuel, technical and operational improvements to the existing fleet, and the development of new technologies.’
“Continuing our positive start to 2024, these two separate, significant multi-year contracts further strengthen our existing partnerships with key customers in the high and heavy and automotive segments, extending predictability for both the customer and Wallenius Wilhelmsen,” Pia Synnerman, Chief Customer Officer at Wallenius Wilhelmsen, said.
Wallenius Wilhelmsen is assessing the viability of both HSFO-biofuel blends and very low sulphur fuel oil (VLSFO) biofuel blends in the Asia region as part of its global deep-sea trade decarbonization strategy.
As part of the efforts, the company recently trialed B30 HSFO biofuel while calling Masan Port, South Korea.
As a step towards reducing emissions and promoting eco-friendly practices, Wallenius Wilhelmsen also signed a biofuel contract with the U.S. energy major ExxonMobil.
The latest deals are being announced on the back of the company’s massive investments in dual-fuel newbuilds.
In October 2023, the Oslo-listed RoRo vessel operator sealed a contract for the construction of four 9,350 CEU methanol-capable and ammonia-ready vessels and individual options for an additional eight car carriers. Wallenius Wilhelmsen believes that methanol is the fastest way to net zero emissions.
The four vessels are set for delivery from mid-2026 and onwards by China’s Jinling Shipyard (Jiangsu).
The PCTCs will be named Shaper-class.