Höegh Autoliners signs its biggest shipping deal of 2024

Höegh Autoliners announced it has signed a five-year contract with a “major international car producer” to ship vehicles, starting from January 1, 2025.

The deal covers “substantial volumes” out of Asia and the Atlantic, said Höegh, and was announced as part of its practice of disclosing new contracts with a value of $100m.

The latest contract brings Höegh Autoliners’ contracts over the last two years to average annualised volumes of 10.8m cbm, it said, with an average duration of 4.3 years, and Average contract rates of over $90 per cbm.

Höegh Autoliners has enjoyed a long run of increasing rates; its gross rate for the third quarter this year was $101.50 per cbm, and reached $102.7 per cbm in November.

Revenues have continued to grow despite falling volumes, and the increase in freight rates has also outpaced expenses. The company’s net rate per cbm has risen from $50 in 2021, to $62.5 in 2022, and $77.8 in 2023. In 2024, the net freight rate per cbm has risen from $83.6 in the first quarter to $86.7 in the third quarter.

Andreas Enger, CEO of Höegh Autoliners, said: "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.”

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High and heavy and break bulk accounted for 24% of Höegh’s volumes over the last three months, it said on December 6.

"The activity level in November was high both for contracted cargo and spot cargo. We continue to optimise capacity in the various trade lanes and give priority to our strategic long-term customers. The gross freight rate was above $100 per cbm for the fifth consecutive month, and was the second highest on record,” said Enger.