Wallenius Wilhelmsen Signs Korean Customer and Acquires Two RoRo Ships

January 22, 2024

(Credit: Wallenius Wilhelmsen)

Wallenius Wilhelmsen, the world’s largest RoRo vessel operator, has signed a multi-year shipping contract with South Korea’s construction machinery company and taken delivery of two vessels.

Through its 80% owned subsidiary EUKOR, Wallenius Wilhelmsen welcomed the 2009-built, 6,600 CEU Morning Camilla vessel following the declaration of a purchase option under the long-term charter-in agreement.

The purchase price is $30 million, well below the assessed charter-free valuation of around $70 million, the RoRo operator said.

The vessel comes in addition to EUKOR exercising and taking over the 2006-built, 6,600 CEU Morning Cecilie during the fourth quarter of 2023.

According to Wallenius Wilhelmsen, the purchase price was $10 million, which is below the assessed charter-free valuation of approximately $70 million.

In addition, Wallenius Wilhelmsen signed a shipping contract with unnamed South Korea’s construction machinery company.

The new agreement, which has a duration of three years, plus a two-year extension option, is valued at approximately $290 million in total, based on expected volumes over the three-year period.

The contract started in January 2024, with rates in line with current market levels, according to the company.

“This multi-year contract further strengthens our partnership with one of our key customers in the high and heavy segment extending predictability not only for us, but also for the customer,” says Pia Synnerman, Chief Customer Officer at Wallenius Wilhelmsen.

The contract includes Wallenius Wilhelmsen’s Reduced Carbon Freight Service, whereby through the utilization of B30 Biofuel, customers can typically reduce their Scope 3 CO2/GHG supply chain emissions by approximately 20-25%.

“We are witnessing a transformation in customers’ sense of urgency regarding the need to decarbonize their supply chains. Customers are partnering up with us and are increasingly committed to securing more sustainable solutions, such as biofuel,” Synnerman added.