HÖEGH AUTOLINERS has renewed multi-year contracts with an undisclosed major international car producer.

Several long-term contracts cover the transport of cars in various trade lanes, with some already in effect and all with three-year duration.

“The renewal of these contracts, with substantial cargo volumes in several of our core trade lines, represents another milestone in our efforts to build a solid contract backlog,” Andreas Enger, Höegh Autoliners, said. “We have successfully served this customer for many years and are delighted that they again have chosen Höegh Autoliners as their preferred carrier for another contract period.

“The customer aligns with our decarbonization goals, and we have strategic discussions with them on collaborating to reduce the carbon footprint associated with transporting their products,” Mr Enger said.

According to its recently-released trading update for October 2024, the company transported 1.1 million cbm of cargo on prorated basis. Transported cargo in the last three months (August – October) was 3.3 million cbm.

Average prorated gross freight rate in October 2024 was USD 101.8 per cbm (+0.3% compared to average gross rate in Q3 2024). Average prorated gross freight rate in the last three months was USD 102.0 per cbm.

Average prorated net freight rate in October 2024 was USD 88.8 per cbm (+2.4% compared to average net rate in Q3 2024). Average prorated net freight rate last three months was USD 87.2 per cbm.

HH/BB share of prorated volumes carried in October was 23%, somewhat lower than the three months’ prorated HH/BB share was 25%.

Mr Enger said the fourth quarter had started well for Höegh Autoliners and rates achieved in October are close to record levels.

“We continue to increase the share of cargo coming from strategic customers with whom we have long-term contracts and in October 80% of the cargo was in this category.

“Höegh Borealis was delivered from the shipyard mid-October and is now on its maiden voyage from Asia to Europe. With two of the newbuilds now on water and two more to be delivered in January our lifting capacity will gradually increase in the months to come,” Mr Enger said.