Our Way 1
A PARTNERSHIP BETWEEN WALLENIUS LINES & WILH. WIL
HELMSEN VALUES FAMILY D uring the 1990s, a fundamental shift took place in the car industry when many operators consolidated their businesses. Ford bought Jaguar and Land Rover, and Daimler merged with Chrysler and partnered with Mitsubishi, to name a few. This development led to fewer but bigger players in the market, which in turn raised the demand for more full-scale shipping solutions, which neither Wallenius Lines nor Wilh. Wilhelmsen were able to offer due to the scale of their operations. At the time, Wallenius Lines had a substantial dominance in sailing the North Atlantic and between Asia and Europe, while Wilh. Wilhelmsen’s forte was sailing the Pacific Ocean and the Oceania region. Therefore, competition between the two companies was pretty much non-existent. But by entering into a partnership, they would be able to cover shipping over most parts of the world. There were other factors pointing to a successful partnership, such as both shipping companies being familyowned and attaching great value to longterm and sustainable businesses. Hence, in the summer of 1999, the mutual subsidiary company was formed – Wallenius Wilhelmsen Lines AS – later to be renamed Wallenius Wilhelmsen Logistics. INITIALLY, ALL MARKETING and operational work was handled by the mutually owned company, while the two shipping companies kept owning their vessels, provided crewing and managed their own ships. With a bigger fleet, better prices could be obtained in ports. It also made it easier to ensure that the right vessels were at the right place at the right time, which in turn meant costs could be cut. The partnership grew even more with the purchase of EUKOR, a Korean shipping company, and the operation of an American logistics company, ARC. This structure of partnership stayed in place for the better part of the 2010s, when both shipping companies agreed to have all aspects of the shared operation handled by the mutual company. In April 2017, it was time to take the next step, a great leap: all shared assets, including all vessels, were sold to the mutually owned in Common values and a shared vision were the keys to the fruitful partnership between Swedish Wallenius Lines and Norwegian Wilh. Wilhelmsen shipping companies. The outcome: Wallenius Wilhelmsen Logistics, a market-leading shipping and logistics company. Wallenius Wilhelmsen Logistics, and at the same time the company was listed on the Oslo Stock Exchange in Norway. IN EXCHANGE FOR all sold assets, the parties received shares in the company, representing 37.8 per cent each, thus remaining the main owners – something both parties are pleased with. For the newly founded Wallenius Wilhelmsen ASA, the merger has led to, among other things, even better opportunities for planning, a better usage of the fleet and a simpler model for decision-making. One of the reasons the partnership was so successful is that Wallenius and Wilh. Wilhelmsen had a shared vision from day one. Both companies wanted to expand their business and offer customers a more complete solution. But, perhaps most essential, the two shipping companies have always shared basic values of perseverance and mutual respect, which make fertile ground for long-term profitability. In addition, both parties have over the years always actively worked to develop the partnership and dealt with any diverging opinions early in the process. OUR WAY PARTNERSHIPS 13