Norwegian shipowner Höegh Autoliners has agreed with the owner of the leased vessel Höegh Berlin to terminate the bareboat charter and purchase the vessel for a price of $34.25 million.
According to Höegh Autoliners, the vessel was taken over on 1 March 2023.
Höegh Berlin, built by Höegh at Daewoo Shipbuilding & Marine Engineering (DSME) in 2005, has a capacity of 7,850 CEU.
It was sold in 2009 and chartered back to Höegh Autoliners under a bareboat charter agreement.
Höegh Autoliners said the purchase of Höegh Berlin will reduce the long-term cash capacity cost for the vessel as well as realise additional value gains from taking direct ownership to the leased vessel.
The company added it intends to register the vessel under the Norwegian flag (NIS) after the transfer of ownership, bringing Höegh Autoliners’ number of vessels registered in NIS to 28 out of 31 in its technically managed fleet.
Höegh Autoliners noted this is the fifth bareboat chartered vessel the company has purchased back in less than a year. The other four are Höegh Beijing, Höegh Tracer, Höegh Trapper, and Höegh St. Petersburg.
Per Øivind Rosmo, CFO of Höegh Autoliners, commented: “With the delivery of Höegh Berlin and Höegh Tracer, Höegh Autoliners is again demonstrating our commitment to serve and build a long-term relationship with our customers based on a fleet we own and control.”
“After the purchase of the leased vessels, we will have a fleet of 31 owned vessels, 3 BB chartered vessels with a purchase option, and 3 vessels chartered in on medium-term time-charters. This gives us limited exposure to the currently tight and expensive time-charter market.”
“Höegh Berlin has done a very good job for us and our customers since we built her in 2005 and is very well suited for our established and balanced trade systems from Asia to Europe and the US with a return to Asia via South Africa and Australia or the Middle East.”
“Together with the Horizon class vessels (8,500 CEU capacity) and the Aurora class vessels under construction (9,100 CEU capacity), the series of 7,850 CEU vessels built at Daewoo represents one of the largest and most environmentally friendly PCTC (pure car truck carrier) fleet. These large and fuel-efficient vessels are an important part of our ambition to continue to reduce our carbon intensity and the journey towards being carbon neutral by 2040.”