Wallenius Wilhelmsen subsidiary renews contract with South Korean car manufacturers

EUKOR Car Carriers, a South Korea-based Ro-Ro shipping company under the Wallenius Wilhelmsen Group, has renewed its contract with South Korea’s Hyundai Motor Company and Kia Corporation, increasing both duration and volumes.

The new contract with the two companies under the Hyundai Motor Group (HMG) 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 per cent to 50 per cent. The agreement also entails additional volumes exported from China.

EUKOR said that the total estimated net freight revenue is US$4.2 billion over the duration of the contract and that 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 per cent ownership share in EUKOR remains in place and has not been discussed as part of the negotiations.