Car Shipper Hoegh Drops on Weaker Trade and Port Fee Warning
US Port Fees on China-Built Vessels Set for Oct. 14
[Stay on top of transportation news: .]
Hoegh Autoliners ASA shares slid the most since April after the car-shipping company warned of weaker trade balances and said a threat from proposed U.S. port fees on vessels could raise costs.
The third quarter “has been impacted by weakening trade balance which is likely to continue,” it said Oct. 7, adding that freight rates were weaker in September than the previous three months. The stock dropped as much as 12% in Oslo to the lowest since July.
Car-shipping markets saw a front-loading of volumes following President Donald Trump’s Liberation Day tariff announcements, which has since eased, according to Fearnley Securities AS analysts including Fredrik Dybwad. Export growth in Germany, Japan and South Korea has flattened, while tariffs mean that there could be a risk to Chinese volumes in the coming months, they said.
Hoegh also said that the implementation of U.S. port fees on China-built vessels is likely to further boost costs if it goes ahead as planned. The measures are due to commence Oct. 14.
The company’s shares were down 9.6% by 12:20 p.m. in Oslo.
Want more news? Listen to today's daily briefing belowor go here for more info:
