Höegh Autoliners, a Norwegian car carrier operator, announced that it has renewed its existing shipping contract with a major Asian automaker; the renewal is expected to generate approximately $300 million in revenue for the company.
Under the agreement, Höegh Autoliners’ existing contract with the automaker will be extended through December 2029, covering vehicle transport services on a key trade route.
Höegh Autoliners stated that the renewed contract includes higher committed cargo volumes and updated commercial terms based on current market rates; this contract extension will help the company build a contract pipeline with strategically important clients.
The signing of this contract renewal comes at the peak season for long-term contracts for car carriers. Amid ongoing tightness in fleet supply, operators continue to secure cargo volume commitments from major automakers.
In terms of fleet development, Höegh Autoliners has placed an order for 12 dual-fuel and zero-carbon-ready “Aurora”-class car carriers (PCTCs) and holds options for four additional vessels of the same class. All of these new vessels will be built by China Merchants Heavy Industry (Jiangsu), with deliveries scheduled to begin in the second quarter of 2024. They will all fly the Norwegian flag and be classed by Det Norske Veritas (DNV).
According to Höegh Autoliners, the first eight vessels in this “Aurora” class of PCTCs are equipped with engines capable of running on liquefied natural gas (LNG) and low-sulfur fuel oil, and can be retrofitted to run on ammonia in the future as needed. The lead vessel, the “Aurora”, was delivered in the second quarter of 2024 and entered commercial service in August 2024.
The next four new vessels in this series, for which contracts are already in effect, are expected to be delivered in 2027. Upon delivery, the vessels will be capable of running on ammonia fuel and will be equipped with 7S60ME-LGIA liquid-gas injection ammonia-fueled dual-fuel engines developed by Everllence of Germany.
According to reports, Höegh Autoliners currently operates approximately 40 vessels worldwide, making more than 2,000 port calls annually, and primarily transports automobiles, oversized and heavy cargo and general cargo.