Höegh Autoliners has struck a five-year deal with a major international automotive manufacturer to ship vehicles from 2025.
Höegh announced the contract last week as part of its practice of disclosing new contracts with a value of $100 million.
The line said the contract covered “substantial volumes” from Asia and the Atlantic, but it did not disclose the name of the vehicle manufacturer. It takes effect from January 1, 2025.
"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,” the carrier’s CEO, Andreas Enger, said.
High and heavy and breakbulk has contributed to 24% of Höegh’s volumes over the past three months.
"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,” Enger said.
The latest deal brings Höegh Autoliners’ contracts over the past two years to average annualised volumes of 10.8m cbm, with an average duration of 4.3 years, and average contract rates of over $90 per cbm, the company said.
Höegh Autoliners’ gross rate for the third quarter of 2024 was $101.50 per cbm, and reached $102.7 per cbm in November.
The line’s revenues have continued to climb despite falling volumes, while the increase in freight rates has outpaced expenses. Its net rate per cbm rose from $50 in 2021, to $62.5 in 2022, and $77.8 in 2023. In 2024, the net freight rate per cbm increased from $83.6 in the first quarter to $86.7 in the third quarter.
