Norwegian shipping and logistic company Wallenius Wilhelmsen has secured a new multi-year contract worth more than $1 billion with a ‘leading global player’ in the premium car segment. The agreement covers both shipping and logistics services, as well as the use of biofuel.
As disclosed, the multi-year contract has a duration of three years, plus a mutual two-year extension option. It started between January and April 2024 with rates in line with current market levels.
“We see manufacturers shifting priorities and increasingly looking for solutions which provide predictability in their supply chains. In this case, it means longer-term contracts encompassing both logistics and shipping services , ” said Lasse Kristoffersen , President, and CEO at Wallenius Wilhelmsen.
“This goes hand in hand with Wallenius Wilhelmsen’s goal of being a total solution provider in finished vehicle logistics. This multi-year contract allows for better long-term planning and extended predictability both for the customer and us.”
The company did not reveal further details about the contract, but it did state that it also includes the use of biofuel.
“Environmentally conscious customers recognize the urgency when it comes to decarbonizing global supply chains. Using biofuel is a strategic decision for this customer,” said Pia Synnerman , Chief Customer Officer at Wallenius Wilhelmsen.
The new deal follows Wallenius Wilhelmsen’s recent 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.
At the time, the company revealed that these contracts provided ‘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.’
The Oslo-listed company 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 and recently trialed B30 HSFO biofuel while calling Masan Port, South Korea.
Wallenius Wilhelmsen signed its first biofuel contract with the U.S. energy major ExxonMobil back in June 2023.
The company’s other decarbonization efforts include shipbuilding deals for methanol-capable and ammonia-ready vessels , based on its belief that methanol is the fastest way to net zero emissions.