Biofuel included in Wallenius Wilhelmsen’s two new multi-year shipping deals

December 12, 2024, by Ajsa Habibic

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.