EUKOR successfully renews HMG contract
EUKOR Car Carriers, part of the Wallenius Wilhelmsen group, has renewed its contract with Hyundai Motor Group (HMG), maintaining a 40% volume share on existing rates.“ The agreement confirms EUKOR's strong position in Korea and is a proof of quality delivered under the existing contract,” says Craig Jasienski, CEO Wallenius Wilhelmsen. Underlying operational earnings are expected to be unchanged in the new contract period starting January 1, 2020.
The agreement includes a Bunker Adjustment Factor based on VLSFO price in line with the IMO 2020 regulations, effective for shipments starting January 1, 2020.The contract is renewed for a two-year period with the intention to extend it further, allowing the flexibility for both parties to adjust as per market development and needs.
Maintaining 40% signals a stabilization of the dual-carrier concept that’s needed to cater for the volume size that HMG represents. We are happy to continue our contribution in support of HMG’s future success
CEO Wallenius Wilhelmsen
EUKOR operates a large and modern fleet of about 70 specialized Pure Car and Truck Carriers (PCTC). One of the company’s key business is the export of Hyundai and Kia Motors’ vehicles from their plants in Korea, while also serving most other global automotive leaders. The company is a subsidiary of the Wallenius Wilhelmsen group, part-owned with HMG (80% / 20%).
About Wallenius Wilhelmsen:
The Wallenius Wilhelmsen group (OEX: WALWIL) is a market leader in RoRo shipping and vehicle logistics, transporting cars, trucks, rolling equipment and breakbulk around the world. The company operates around 130 vessels servicing 15 trade routes to six continents, and operates a global inland distribution network, 121 processing centres, and 11 marine terminals. The Wallenius Wilhelmsen group consists of Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC. The group is headquartered in Oslo, Norway, with 9.500 employees in 29 countries worldwide.