Norwegian car carrier player Höegh Autoliners has inked a new five-year contract for the transport of a significant volume of cars.
The client was not revealed but was described as a ‘major international car producer’. The transport of the vehicles, according to the company, will be done in two of its core trade lanes and begin on January 1, 2025. No financial details were revealed but the company only announces contracts worth over $100m.
“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,” said Andreas Enger, CEO of Höegh Autoliners.
Value and volume-wise, this is the most significant deal the company signed in 2024. Following the signing of this contract, Höegh Autoliners have over the last two years signed contracts with average annualised volumes of 10.8m cu m with an average duration of 4.3 years.
The average rate for these contracts is more than $90 per cu m and the remaining average duration of these contracts is 3.5 years. Volumes secured under long-term contracts for 2025 are around 11.7m cu m.
The company has been able to extend a number of contracts with various customers over the past month. In mid-November, the company said it renewed several long-term contracts with a major international car producer for the transport of cars in various trade lanes. The duration of the new contracts is three years and cargo shipping has already started under some of the contracts.
At the end of the month, Höegh revealed that it secured a new shipping contract with a major unnamed international carmaker. This was an extension of an existing deal, which will see the operator of about 40 vessels transport cars in various trade lanes for two years.
