Oslo-listed car carrier operator Wallenius Wilhelmsen has extended a shipping contract with a major European carmaker in a deal worth around $420m.

The three-year extension will run from mid-2028 to mid-2031 and comes on top of about $180m in remaining value under the existing agreement.

Wallenius Wilhelmsen said the extension was agreed early and would provide contract cover at sustainable rate levels for the next five years.

The agreement also includes the use of low-emission fuels as part of efforts by both companies to reduce CO2 emissions.

Pia Synnerman, chief customer officer at Wallenius Wilhelmsen, said the company would continue to support the customer across its outbound supply chain.

“We will continue to support the customer across their outbound supply chain and explore opportunities to expand our collaboration across a broader part of the value chain, including potential logistics scope over time,” Synnerman said.

The value of the extension is based on forecast volumes during the contract period.

Wallenius Wilhelmsen has locked in several large automotive and equipment shipping contracts over the past couple of years, including a $190m renewal with a global automotive distributor announced in March and two contract extensions worth close to $500m last December.