Wallenius Wilhelmsen to end 2024 on a high

Ro/Ro shipping company Wallenius Wilhelmsen expects to end 2024 with profitability higher than last year, as it reports strong demand for all its services.

“We are proud to announce the second strongest quarter on record with adjusted EBITDA of $503m,” said Lasse Kristoffersen, president and CEO at Wallenius Wilhelmsen, revealing Q3 2024 results at the end of October.

“All business units are performing well, and the activity level is high across the organization,” he said. “Year-to-date, all segments have delivered better than in 2023.”

A short-term weakening of sales of auto and heavy equipment globally was attributed to a “temporary softening, rather than a structural shift,” Wallenius Wilhelmsen said, adding that it was “confident” that EBITDA for full year 2024 would beat that of 2023.

“Renewals for contracts expiring in 2024 are progressing well, as evidenced by the latest announcement of a five-year contract in the high and heavy segment,” added Kristoffersen,

“We see strong and increased demand in areas including shipping, logistics, integrated supply chain, digital and reduced emissions services.”

As referenced by Kristoffersen, Wallenius Wilhelmsen recently announced that it has entered into a five-year agreement with a leading agriculture, forestry and roadbuilding equipment manufacturer.

The new multi-year shipping and logistics agreement commences on December 1, 2024, and is valued at approximately $766 million, based on expected volumes over the five-year period. The company said rates are in line with “current market levels” and that the agreement includes a partnership on decarbonization, whereby the customer agrees to pay for the phase-in of green and renewable fuels.

“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 decarbonizing their supply chain”, says Pia Synnerman, chief customer officer at Wallenius Wilhelmsen.
“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.”

Headquartered in Oslo, Norway, the Wallenius Wilhelmsen group operates around 125 vessels servicing 15 trade routes to six continents, a global inland distribution network, 66 processing centers and eight marine terminals.