Strong financial result despite volatility and supply chain challenges

COO of Wallenius Wilhelmsen's logistics services, Mike Hynekamp adds: “Against this backdrop, I could not be prouder of our people and how they have delivered record volumes whilst adhering to pandemic restrictions. It was a strong financial fourth quarter result, it shows we have a world-class team of 8,200 professionals in place.”

160 years’ experience goes a long way

While the market currently sees perhaps exceptionally high freight rates, cost levels are increasing, and Nøklebye believes cost and value of services has to match freight levels in the long-term. “We have been in this business for more than 160 years; we know how to operate over time. In our experience, customers seek long-term, stable logistics partners. It adds predictability, both for them and for us.”

130 vessels are fully utilized

Wallenius Wilhelmsen has a full sailing fleet where all owned and chartered vessels, 130 in total, are being 100 per cent utilized. All lay-ups from the early days of the pandemic are back on the water. Even the newest addition to the fleet, MV Nabucco delivered in November 2021, is busy.

Time spent wisely during the pandemic

“The overall outlook for the shipping segment is positive,” says Nøklebye who sees many opportunities in further streamlining the group’s end-to-end logistics services.

Mike Hynekamp says: “Our customers want more integrated solutions; a partner who can deliver their products from the manufacturing plants, via land transportation, to ports and across the sea for delivery at their dealer network or even the home addresses of their customers.”

Both COOs admit that the past two years have been challenging. They say: “We have spent our time during the pandemic wisely. We focused on improving operational efficiency and implementing new digital capabilities that already give both our customers and us detailed insight into all aspects of our global value chain. The customers have gotten used to receiving continuous updates about the location and status of their merchandise as private citizens, why should transportation of tractors or plant components be any different?”

Tight capacity until 2025

Hynekamp believes that the stretched capacity global trade faces today could remain tight until 2025. Nøklebye says that the company has picked up some spot contracts lately, but in the long run Wallenius Wilhelmsen aims to secure a balanced utilization of the fleet, both on land and water, as this is a more stable sustainable strategy.


Higher volumes lead to improved margins

Wallenius Wilhelmsen’s land logistics also enjoys increased volumes and better margins this past quarter. Many of the technology improvements derive from the logistics business and are rolled-over to the entire value chains as they are tested and proven. “Remote viewing and digital inspection technology are two key areas under implementation right now,” says Hynekamp who is especially proud of the ingenuity of the digital capabilities coming out of this segment.

“Previously, we ran a more complemented business: Land-based logistics and shipping. Today we know that the needs are more integrated, the customers’ expectations are the same. We have set up an integrated customer growth organization, it does not matter where the logistic solution takes place, it is all part of the end-to-end value chain we deliver. Of course, we have extra services on land that are not relevant for the shipping segment and vice versa, but the base objective remains -to satisfy customers.”