WW extends contracts amidst Trump uncertainty

WALLENIUS WILHELMSEN has locked in key contract extensions just as the automotive industry begins to come to terms with the Trump Administration’s unilateral imposition of 25% tariffs on vehicle imports.

WW has renewed a shipping contract with a European based automotive manufacturer, lasting five years. “We are pleased to announce this multi-year agreement with a long-term customer strengthening our existing partnership. This demonstrates their commitment to securing long-term ocean capacity and enables us to deliver best-in-class service helping our customer reach their ambitions,” CCO Pia Synnerman said.

The contract has an estimated value of USD 380 million over the five years and commences today, 1 April. Rates are in line with current market levels, the company said.

Last week WW entered a 10-year contract extension with an established OEM with the ambition to grow the partnership further over the years to come. WW delivers a broad scope of services across business areas as part of this contract including receiving, end-of-line service, accessory installation, managing deliveries, distributing and storing vehicles and providing digital supply chain insight.

WW also provides short-sea and deep-sea ocean services under separate agreements. The ambition for both parties is to further grow the partnership and develop new, efficient solutions that will optimize the supply chain for the OEM.

“Long-term multi product contracts benefit both our customers and us as they provide seamless integration, flexibility for both parties, and room for innovative collaborations to enhance digital value chain solutions,” John Felitto, EVP & COO Logistics Services said.

“Looking ahead, the shared goal is to broaden the contract’s scope, to include ocean, and ensure a comprehensive and integrated strategy that emphasizes streamlining processes and adopting enhanced digital solutions to future-proof operations. The contract has a solid land-based scope and is one of our largest. It is exciting to enhance a partnership that already prioritizes comprehensive integration and digital transformation at its core,” Mr Felitto said. The contract has an overall estimated gross revenue of USD 2 billion starting April 2027.

Meanwhile, analysts have begun to downgrade profit projections for PCTC/ro-ro operators such as WW and Höegh Autoliners following last week’s Trump declaration, aimed at supporting the reinvigoration of US auto manufacturing.

The below lists the top ten value/source of US vehicle imports in 2024. While those from Mexico and Canada are unlikely to use sea transport all source nations do, including the surprisingly low quantity from regular Trump target, China.

1. Mexico: US$50 billion (22.8% of total US imported cars)
2. Japan: $40.8 billion (18.6%)
3. South Korea: $38 billion (17.3%)
4. Canada: $28.4 billion (12.9%)
5. Germany: $25.6 billion (11.7%)
6. United Kingdom: $9.8 billion (4.5%)
7. Slovakia: $6.3 billion (2.9%)
8. Italy: $3.99 billion (1.8%)
9. Sweden: $3.97 billion (1.8%)
10. mainland China: $3.8 billion (1.7%)

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