OSLO, NORWAY: 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 Car Carriers’ 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 1 January 2020. The agreement includes a Bunker Adjustment Factor based on VLSFO price in line with the IMO 2020 regulations, effective for shipments starting 1 January 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 Hyundai Motor Group (HMG) represents. We are happy to continue our contribution in support of HMG’s future success,” says Jasienski.