Norwegian shipping and logistics company Wallenius Wilhelmsen has secured two multi-year shipping contracts, both including biofuel, with undisclosed “large auto OEMs” .
As informed, the first contract is valued at approximately $263 million and will run for three years. This contract will adopt Wallenius Wilhelmsen’s re-engineered bunker adjustment factor, BAF2.0 , for the Asia to North America trade lane. It will commence in January 2025.
According to the company, BAF2.0 will capture fuel price fluctuations, while including a future fuel mix. It is expected to ensure cost predictability of the fuel mix during the transition to net-zero fuels. It integrates multiple fuel types into a single charge.
The second deal is a two-year shipping contract worth approximately $112 million. The contract includes a fixed surcharge for biofuel use and commences in April 2025.
“These agreements add to our contracted book of business and are a great testament to our customers’ commitment to ensuring more sustainable freight by investing in the use of biofuel when transporting their cars with us. We are dependent on forward-leaning customers who join us on the path to net-zero,” said Pia Synnerman , Chief Customer Officer at Wallenius Wilhelmsen.
Earlier this year, Wallenius Wilhelmsen also inked a multi-year contract worth more than $1 billion , covering shipping, logistics, services, and biofuel use, with a ‘leading global player’ in the premium car segment.
As part of its global decarbonization strategy, the Oslo-listed company is assessing the viability of both HSFO-biofuel blends and very low sulphur fuel oil (VLSFO) biofuel blends.
In one of the recent developments, the company received its first biofuel insetting verification statement , recognizing its use of B100, from classification society DNV.