The scandinavian shipping group Höegh is still hungry for “Aurora” vessels. Six more car carriers from the series have now been ordered. A further eight could follow.
Half a dozen of the vessels, fitted with dual-fuel engines designed to run on LNG, have been contracted at the China Merchants Heavy Industry Jiangsu (CMHI) shipyard, as announced by the listed company Höegh Autoliners. Delivery is scheduled for the period 2029–2031.
Höegh has already been taking delivery of newbuilds fromthe “Aurora” series for some time. The vessels have a capacity of 9,100 CEU and have received DNV certification as “ammonia-ready” and “methanol-ready”. According to the shipping company, they are expected to reduce CO₂ emissions by up to 58 per cent compared with conventional PCTC vessels.
With this latest order, the series grows to a total of 18 vessels, all of which are being built by CMHI. The sheer volume appears to be having a positive effect: Höegh states that it has “negotiated extremely attractive terms, reflecting the close relationship with the shipyard, economies of scale and the economic benefits of building sister ships”, according to a statement issued today. The construction price itself has not been disclosed. However, according to a further announcement, the company has raised the equivalent of around $152 million through a private placement of new shares. These funds are to be used – together with debt financing – to finance the newbuilds.
Höegh secures further building slots
And this may not be the end of the orders. The Scandinavian company has secured an option on four further Aurora vessels on the same terms, as well as building slot reservations for four additional vessels at the same shipyard. The option can be exercised within six months, whilst the four building slot reservations are valid until 31 December 2027.
CEO Andreas Enger today justified the new order by citing “very strong earnings potential, an excellent carbon footprint, great flexibility in terms of cargo and future-proof retrofit capability”. The newbuilding programme ensures “competitive cost structures that enable profitable operation even during periods of lower freight rates”.
To date, Höegh operates around 40 RoRo vessels in global trade networks, serving not only the automotive market but also handling a wide range of other rolling cargo as well as heavy-lift project cargo. As part of a fleet modernisation programme, vessels have also been sold in the recent past.
“The further expansion of our fleet strengthens our ability to capitalise on the growth of the Asian market and to meet evolving customer demand. At the same time, we are gaining strategic flexibility, supporting long-term fleet renewal and positioning ourselves optimally to capitalise on commercial opportunities in the coming years,” the CEO concluded.
