WALLENIUS Wilhelmsen has agreed to an early three-year extension of a contract with a (unnamed) leading European auto manufacturer, to run from mid-2028 to mid-2031.
Wallenius Wilhelmsen says the estimated value of the contract extension is around USD 420m, on top of the remaining initial value of around USD 180m.
The Oslo-based Wallenius Wilhelmsen says the extension reflects a long-standing strategic relationship and provides earnings visibility at sustainable rate levels for the next five years. “It also reflects the value of our reliable and flexible service offering and the ambition to further strengthen the collaboration,” chief customer officer Pia Synnerman said.
“We will continue to support the customer across their outbound supply chain and explore opportunities to expand our collaboration across a broader part of the value chain, including potential logistics scope over time,” Ms Synnerman said.
The agreement includes the use of low‑emission fuels, supporting efforts on both sides to reduce CO2 emissions over time.
The value of the contract extension is based on forecast volumes during the extension period.
Analysts said OEMs were keen to lock in sea transport capacity during a period of China-driven high export demand, now forecast to last for several years. DCN has seen market offers through brokers for urgent spot single-voyage shipments of 2160 vehicles to the Middle East and 4,860 to Sri Lanka, both from Shanghai, and both must be completed in June/July.
Meanwhile, the installation of a 46-metre Oceanbird wing sail is underway on the Wallenius Wilhelmsen PCTC Tirranna in Rotterdam.
Originally, Tirranna completed a unique retrofitting process at IMC Shipyard in Zhoushan, China, during a routine drydocking in mid-2024, to prepare for the installation of the wing sail .
Retrofit in progress onboard Tirranna. Credit: Oceanbird
Prior to docking, extensive preparation and planning had taken place with the yard, finalising all design documentation (e.g. strength and fatigue analysis) with subcontractor Delta Marin, along with obtaining class approval from DNV. This work was crucial to ensuring an optimized solution related to both the steel weight and cargo loss, Wallenius Wilhelmsen said.
“These modifications are part of Tirranna’s ordinary five-year docking process, aimed at preparing the vessel with the necessary reinforcements and installing the foundation for the WPU (wind power unit)’s folding mechanism.
“The primary goal of this retrofit is to test and evaluate a full-sized WPU at sea on a real vessel, providing crucial data for the design and optimization of future wing sails and vessels such as the Orcelle Wind.
“As the first vessel to undergo this bespoke retrofitting, Tirranna serves as a one-of-a-kind testbed for this potentially game-changing technology. With a length of 230 meters and a capacity of about 8000 cars, Tirrana is the perfect vessel to test the concept for the ro-ro segment.
“The insights gained from this installation will be instrumental in refining the design and performance of the WPU, potentially paving the way for the creation of Orcelle Wind a new build optimized for wind as the main propulsion.”