HÖEGH AUTOLINERS is continuing to lock-in long-term business at good freight rates despite wider indications of a late-year slump in volumes in PCTC trades.
The company announced Friday Oslo time [6 December] it had signed a 5-year contract with “a major international car producer” for transport of significant volumes of cars in two core trade lanes. Shipments under the contract will commence 1 January 2025.
Following the signing of this contract, Höegh Autoliners have over the last two years signed contracts with average annualised volumes of 10.8 million cubic metres with an average duration of 4.3 years. The average rate for these contracts is more than USD 90 per cbm and remaining average duration of these contracts is 3.5 years. Volumes secured under long-term contracts for 2025 are around 11.7 million cbm, the company said.
Andreas Enger CEO of Höegh Autoliners commented: “The signing of this long-term contract for substantial volumes both ex-Asia and ex-Atlantic, in two of our core trade lanes, represents another important milestone in our efforts to build a solid contract backlog and support strategically important customers.
“Value and volume wise, this contract is the most significant the company has signed in 2024, and it demonstrates the customers appreciation of our product and service level. We have historically a long-term relationship with this customer and are delighted that they now have chosen Höegh Autoliners as one of their core suppliers for deep sea transport of their valuable products for the next 5 years.”
In the November trading update Mr Enger reported the activity level in the month was high both for contracted cargo and spot cargo. “We continue to optimize capacity in the various trade lanes and give priority to our strategic long-term customers,” he said.
“The gross freight rate was above USD 100 per cbm for the 5th consecutive month and was the second highest on record. Volumes transported increased somewhat as we now get the effect of having two of the newbuilds in operation. The High/Heavy and Break Bulk share in November was 23%”.
