Hyundai Glovis, the auto shipping unit of South Korea’s Hyundai Motor Group, has signed a five-year KRW2bn ($432m) maritime transport contract with Volkswagen Group.
The contract is the company’s largest ever from a global automaker, and will see the company handle all sea transportation for finished cars exported from Europe to China by Volkswagen, Audi, Porsche, and Bentley.
“With this agreement, Hyundai Glovis is expected to greatly improve the efficiency and stability of its fleet operation by being able to fill a large scale of the fleet on the far east route from Europe, which was relatively short of transportation compared to other routes. Hyundai Glovis has been focusing on attracting local cargo to ship to ships returning to the Far East after exporting finished cars from Korea to Europe,” the company said.
Hyundai Glovis said the deal will see its loading rate dramatically improve and the increased efficiency will lead to a reduction in logistics costs.