Hoegh Autoliners has signed a five-year deal to carry cars from Asia to Europe.
The Oslo ro-ro owner announced the agreement on Thursday with an unnamed Asian automaker, continuing its push to renew contracts at higher rates.
It said the contract has significant value and will begin this month.
“The signing of this contract marks a milestone and confirms our strategy of building long-term relationship with customers in our core trade networks,” chief executive Andreas Enger said.
“Building a sustainable contract backlog and working strategically with major [original equipment manufacturers] to solve their long-term transportation needs is our top priority and how we want to deploy a major portion of our capacity.”
Last week, Hoegh Autoliners reported that the car carrier market had become volatile, with rates hitting all-time highs of $96.10 per cbm in March, with the three-month average at $87.90 per cbm.
Both figures were up from the fourth-quarter 2022 average of $79.80 per cbm.
Then, Enger said there was continued strong demand for both spot and contract cargoes despite lower volumes caused by delays spurring longer voyages.
“We are taking some preventive actions but expect both volumes and rates to be volatile going forward,” he said on 12 April.
“The underlying trend for rates remains positive. The share of spot cargo will have an impact on the reported rates on a month-by-month basis and March was in this respect somewhat more favourable than the expected average.”
This week, Clarksons attributed the highs — which worked out to time charter equivalents of $110,000 per day last month — to rising trade volumes, more long-haul shipments and port congestion.
Hoegh Autoliners’ Oslo-listed shares were up NOK 2.80 ($0.26), or 4.5%, to NOK 64.80 since the open on Thursday.
