PCTC/ro-ro operator Wallenius Wilhelmsen has extended its run of New Year contract wins, signing two further multi-year deals.

A shipping contract with one of the world’s leading construction and mining equipment manufacturers has a duration of three years, plus a two-year extension option. The contract is valued at approximately US$1 billion in total, based on expected volumes over the three-year period.

WW describes the manufacturer as a key long-term partner, with the renewed agreement actually beginning in November 2023 with amended rates in line with current market levels.

In addition, WW recently signed a multi-year shipping contract with one of the largest automotive distributors in the Americas. The contract, which commenced in early 2024, is valued at approximately US$200 million based on anticipated volumes over a two-year period. Rates are in line with present market levels.

Both customers’ agreements include direct support for Wallenius Wilhelmsen’s decarbonisation initiatives, such as the use of biofuel, technical and operational improvements to the existing fleet, and the development of new technologies.

“Continuing our positive start to 2024, these two separate, significant multi-year contracts further strengthen our existing partnerships with key customers in the high and heavy and automotive segments, extending predictability for both the customer and Wallenius Wilhelmsen,” chief customer officer Pia Synnerman said.

Freight rates and PCTC charter rates are continuing to rise, thanks to increased demand, especially for EV shipments out of China, and diversions caused by Red Sea security risks. Charter rates passed US$110,000 a day for 12-month fixtures last year

WW reported earnings of about US$1.3 billion in revenue every quarter for the last year, with $400-500 million a quarter in operating profit.