On December 6, Norwegian car carrier operator Höegh Autoliners ASA (“Höegh Autoliners”) has signed a 5-year contract with a major international car producer for transport of significant volumes of cars in two of the Company’s core trade lanes. Shipments under the contract will commence January 1, 2025.
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”.
Following the signing of this contract, Höegh Autoliners have over the last two years signed contracts with average annualised volumes of 10.8 million cbm 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.
Höegh Autoliners are on a clear path to reduce carbon footprint from transport of cars and rolling equipment between continents. With two of the Aurora class vessels now in operation and ten more to enter the fleet the next 2-3 years we can offer our customers one of the most sustainable and environmentally friendly transport solution in the industry.
This announcement is a part of our effort to increase transparency through a practice of disclosing a monthly trading update and new contracts with mutual rate and volume commitments exceeding a total value of USD 100 million.