Hoegh Autoliners has inked a nine-figure, multi-year deal with an Asian carmaker.
The Oslo-listed car carrier owner did not name the new customer in its announcement on Wednesday — chief executive Andreas Enger called it only a “world-leading car producer” — but did say it would primarily be carrying electric vehicles from Asia to Europe through to the end of 2028.
“We take pride in the trust given to us for bringing their prestigious brands to their end users in Europe in the upcoming years,” Enger said.
“The trade from East Asia to Europe is one of our core trades where we are offering our customers quality transport with high frequency and competitive transit times.”
The company did not disclose the contract’s value but said the announcement was part of its transparency efforts to disclose a contract with a “mutual rate and volume commitments” above $100m.
In the announcement, Enger added that the company would be taking delivery of its first 9,100-ceu Aurora-class newbuildings in the second half of the year, offering automakers the ability to slash their carbon footprint.
The company has 12 on order and some can run on ammonia fuel.
“This offering embodies our commitment to delivering unparalleled service while at the same time being a front runner for sustainable shipping,” he said.
Earlier this month, Hoegh Autoliners said it rounded out 2023 by carrying 1.3m cbm of cargo at $94.70 per cbm on a gross basis and $82.10 per cbm on a net basis in December.
Both were slight dips from the November numbers, but Enger noted they were close to record levels and called the year a successful one for the company.
He cautioned that the situation in the Red Sea — which prompted Hoegh Autoliners to reroute ships around the Cape of Good Hope in mid-December — could have an impact on the company’s bottom line moving forward, as cargo volumes would dip and bunker costs would increase.
In late trading on Wednesday, Hoegh Autoliners shares were up NOK 1.55 ($0.15) to NOK 99.40.
