Hoegh Autoliners shares took a tumble on Tuesday after it reported lower volumes and rates in September.
The Norwegian car carrier giant’s shares fell from NOK 136.50 ($12.81) to NOK 133 before clawing back some of the losses and reaching NOK 134.40.
The dip followed the company’s monthly trading update, where it said it transported 1.1m cbm of cargo, earning $100.50 per cbm on a gross basis and $83.80 per cbm on a net basis.
This was down 100,000 cbm from July and August and lower than the best-ever rates of $103.60 per cbm gross and $88.90 per cbm net reported in August.
Chief executive Andreas Enger said: “Volumes transported in September were lower than the recent run rate mainly due to periodical maintenance (off-hire) of three vessels.
“We expect to continue to see volatility in the monthly volumes and rates depending on factors such as trade and cargo mix, vessels’ position and vessel maintenance schedules.
Enger said that over the month about 75% of cargoes were moved for Hoegh Autoliner’s strategic customers on long-term contracts.
The company has taken steps to secure backlog as the market is shifting from a period of rising rates to one of stability.
In the second-quarter earnings presentation, Enger said Hoegh Autoliners wanted to sign more long-term contracts.
These contracts would reflect the higher rates, but he said customers were willing to pay as they viewed the sector as more “industrial” and a key part of their supply chain.
