Wallenius Wilhelmsen Progresses with Fleet Growth

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Vehicle transport specialist Wallenius Wilhelmsen recently finalized a multi-year transport deal with a South Korean construction equipment manufacturer and expanded its fleet with the addition of two vessels.

As reported in a filing with the Oslo Bors, Wallenius Wilhelmsen detailed the contract as a significant engagement for the Norwegian firm. Spanning three years with an option to extend for two more, the deal is estimated to be worth approximately $290 million, based on projected volumes over the initial three-year period.

The agreement, which commenced in January 2024, features rates that Wallenius Wilhelmsen asserts are consistent with the prevailing market conditions.

A notable aspect of the contract is the inclusion of Wallenius Wilhelmsen's Reduced Carbon Freight Service. This initiative, as claimed by the company, is capable of cutting the client’s Scope 3 CO2 and GHG emissions in the supply chain by about 20-25%, primarily through the use of biofuel.

In a distinct announcement, Wallenius Wilhelmsen conveyed that its majority-owned subsidiary, EUKOR, has acquired the vessel Morning Camilla. The vessel, constructed in 2009 with a capacity of 6,600-ceu, was purchased for $30 million under a long-term charter-in agreement, a figure notably lower than its estimated charter-free value of about $70 million.

Additionally, during the last quarter of 2023, EUKOR finalized the acquisition of the Morning Cecilie, built in 2006 and also with a capacity of 6,600-ceu. The acquisition, amounting to $10 million, was under the vessel's charter-free valuation of $70 million. Collectively, the market value surplus for both ships is approximately $100 million. These acquisitions were funded using the company's available cash reserves.