EUKOR Car Carriers, part of the Wallenius Wilhelmsen group, has renewed its contract with Hyundai Motor Car and Kia Motor Car corporations, increasing both duration and volumes.
"The contract confirms Wallenius Wilhelmsen’s strong position in Korea and cements our long-term partnership with Hyundai Motor Group," says Lasse Kristoffersen, President & CEO of Wallenius Wilhelmsen.
"The contract is nothing short of historic for EUKOR and Wallenius Wilhelmsen," says Xavier Leroi, EUKORs CEO and heading the Shipping segment at Wallenius Wilhelmsen.
The new contract contains two major changes from the previous one. The duration has been increased from three to five years and the share of Korean exports has been increased from 40% to 50%. The agreement also entails additional volumes exported from China.
The total estimated net freight revenue is USD 4.2 billion over the duration of the contract.
The freight rate increases are in line with market rates for a contract of this nature.
The put and call agreement linked to HMG's 20% ownership share in EUKOR remains in place and has not been discussed as part of the negotiations.
