Norway’s roro Höegh Autoliners has announced another big contract this month. The Oslo-based company said on Friday that it 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.
It said the shipments under the contract will start on January 1, 2025.
The company didn’t disclose the counterparty’s identity, or the amount it stands to earn from the contract.
However, it mentioned that the new contracts with mutual rate and volume commitments exceed a total value of $100m. It also mentioned that it has “historically a long-term relationship with this customer.”
“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 contract is the most significant the company has signed in 2024.
Following the signing of this contract, Höegh Autoliners have over the last two years signed contracts with average annualised volumes of 10.8 million cbm with an average duration of 4.3 years.
The average rate for these contracts is more than $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 has now two of the Aurora-class vessels in operation and ten more to enter its fleet the next two to three years.
Earlier this month, the company revealed that it secured a two-year contract with a major international car producer for transport of cars in various trade lanes.
