Wallenius Wilhelmsen, the Norwegian transport and logistics giant, has signed two new contracts worth over $1 billion with a major equipment manufacturer. These contracts include maritime transport and logistics services for a period of three years.
Contract Details
The Oslo-registered group announced that the maritime transport share of these contracts is approximately $950 million, while the logistics services share is close to $100 million. The customer for these contracts has not been disclosed, but Wallenius Wilhelmsen has described it as an old partner.
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Shipping Rates and Previous Agreements
The shipping rates under this new agreement are generally in line with the rates of the previous three-year contract. The start date and expected shipment volumes under these contracts have not been disclosed. John Fleetwood, the new customer director, stated that the company's strong relationship with this manufacturer allows them to continue supporting the global supply chain of the customer through their transport network and logistics operations.
The new agreements add to a series of large industrial and automotive contracts that the group has secured in recent years. In January 2024, Wallenius Wilhelmsen had signed a three-year contract worth approximately $1 billion with an unspecified equipment manufacturer for construction and extraction. This contract commenced in November 2023 and includes an option for a two-year extension.
This group has continued to build its portfolio of contracts this year, signing an early renewal of $420 million with a major European automaker in June. Additionally, in March, they signed a $190 million renewal contract in vehicle distribution and a $130 million contract with an Asian heavy equipment manufacturer in January.
The new contract win comes just a day after Wallenius Wilhelmsen confirmed its expansion of the car carrier shipbuilding program in China. The company is ordering four LNG dual-fuel ships with a capacity of 9,900 CEU from the Jinling shipyard in Jiangsu.
The program could involve a total investment of around $1.5 billion if all options are exercised, bringing Wallenius Wilhelmsen's newbuilding fleet to 26 ships, including options.
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