Wallenius Wilhelmsen has booked more than $750m in revenue in a deal with a high and heavy customer.
The Oslo-listed car carrier giant announced on Monday a five-year contract with “a leading agriculture, forestry and roadbuilding equipment manufacturer” that it expects to add $766m to its top line, based on expected volumes.
The contract also has provisions for the customer paying for the phase-in of alternative fuels.
Wallenius Wilhelmsen chief customer officer Pia Synnerman said: “Strengthening our long-term partnership with a key high and heavy customer, the agreement reflects the customer’s need to secure predictable long-term ocean capacity and commitment to decarbonising their supply chain.
“This renewed agreement complements the existing logistics and digital supply chain scope we currently provide them globally, including our integrated service offering, whereby we manage product and information flows along the entire outbound supply chain, from their factories to ports in destination regions.”
The company had 46% of its contracts up for renewal this year and had already announced several totalling more than $1.5bn.
It has a significant amount of its backlog up for renewal in the second half of the year, in an environment where rates have been in the six-figure range for two years.
Wallenius Wilhelmsen has also been pushing customers to adopt greener fuels in its new contracts.
Earlier in the year, chief executive Lasse Kristoffersen said the company was pushing customers on decarbonisation efforts.
He told TradeWinds that customers were willing to pay an extra 10% for a 25% reduction in emissions.
Kristoffersen said it was “a good place to start”.
At lunchtime on Monday, Wallenius Wilhelmsen shares were trading at NOK 120.40 ($10.93), a NOK 1.40 gain from its close on Friday but down NOK 3.60 on the day.
