Höegh Autoliners ASA (HAUTO) closed out 2024 with notable performance metrics, reflecting robust operational activity and evolving market dynamics. In December alone, the company transported 1.2 million cubic meters (cbm) of cargo on a prorated basis, contributing to a three-month total of 3.5 million cbm for the October-December period. These figures underscore Höegh Autoliners’ consistent performance in a complex global shipping environment.
Despite the high cargo volumes, average freight rates experienced a modest decline. The prorated gross freight rate in December 2024 stood at USD 96.8 per cbm, marking a 4.6% drop compared to the Q3 2024 average. Similarly, the prorated net freight rate for December was USD 84.1 per cbm, down 3.0% from the previous quarter. Over the last three months, the averages settled at USD 100.4 per cbm for gross rates and USD 86.7 per cbm for net rates.
A key component of Höegh’s cargo mix was the share of High & Heavy/Breakbulk (HH/BB) volumes, which accounted for 25% of the prorated cargo in December and 24% across the last quarter. This segment remains a vital aspect of the company’s operations, reflecting its diverse service offerings.
CEO Andreas Enger attributed the high December activity levels to the introduction of new vessels into the fleet. “We benefited from having two of the newbuilds, Höegh Aurora and Höegh Borealis, in operation,” Enger remarked. He also highlighted the late-December delivery of Höegh Australis and Höegh Sunlight from the shipbuilding yard, which are set to enhance capacity starting January 2025.
Freight rates in December were influenced by shifts in trade and cargo mix, with contract cargo comprising nearly 80% of the total. While rates saw a slight dip, volumes remained consistent with November’s performance, demonstrating the resilience of Höegh’s operational model.
Enger’s comments encapsulate the broader outlook: “December freight rates were somewhat lower than recent months following from trade and cargo mix. The share of contract cargo was close to 80%. Volumes [were] in line with November and HH/BB share [was] in line with recent months.” These insights point to a steady operational foundation, even amid fluctuating market conditions.
Höegh Autoliners’ performance highlights its ability to adapt to market demands while leveraging its growing fleet to maintain a competitive edge. With additional capacity coming online in early 2025, the company is poised to navigate the challenges and opportunities of the year ahead.
