PCTC specialists Wallenius Wilhelmsen and competitor Höegh Autoliners have each announced big contract wins in the global vehicle transport sphere.
Wallenius Wilhelmsen has signed what it describes as “a significant multi-year contract” with a leading [unnamed] industrial equipment manufacturer.
The new multi-year contract has a duration of three years, plus a mutual two-year extension option and is valued at approximately US$195 million in total, based on expected volumes over the three-year period, with rates in line with current market levels.
“It is yet another example of how we are continuing to renew and strengthen our existing partnerships,” Pia Synnerman, chief customer officer at WW said. “This updated shipping agreement with an established long-term customer, is based upon multiple scheduled trade routes and secures the ocean capacity required to help deliver on their market ambitions.”
Separately, WW has taken delivery of the 2009-built PCTC vessel Porgy (6400 CEU) following the declaration of a purchase option under the long-term charter-in agreement with Japanese owners.
WW said the assessed value of the vessel is above the strike price. “In line with previous transactions, no financial gains will be booked in connection with the purchases and the effect on the Profit and Loss accounts is expected to be immaterial. The purchase was financed with cash on hand,” it said.
Rival Höegh Autoliners has signed a 5-year contract with a major international car producer for transport of cars from US and Mexico to the Middle East.
Andreas Enger, CEO of Höegh Autoliners, said: “We are pleased to have formalized the collaboration with one of our most important customers in the form of a five-year contract for the transport of their cargo from US and Mexico to the Middle East.
“Serving our strategic customers and allocating capacity to them in our systems both ex-Atlantic and ex-Asia is our top priority. We have a long history in the US to the Middle East trade and it gives us confidence that customers see us as their trusted long-term carrier for their products in this corridor.”
Mr Enger said Höegh Autoliners was committed to providing customers with transportation that has reduced carbon intensity. “We have successfully reduced our carbon footprint by 40% since 2008. Later this year we will offer our customers the opportunity to transport their cargo on the first of our Aurora class newbuilds, which at the time of delivery will be the largest and most carbon-efficient car carriers in the industry, with over 50% lower emissions than a standard PCTC.”
Höegh said the announcement was “a part of our effort to increase transparency through a practice of disclosing a monthly trading update and new contracts with mutual rate and volume commitments exceeding a total value of US$100 million”.
