PACIFIC BASIN (02343) announced that in early 2026, the market continued the normal seasonal trend observed before the Lunar New Year. During the quarter, dry bulk freight rates increased compared to the same period last year. This was primarily driven by disruptions to shipping routes and decreased operational efficiency due to geopolitical factors, which boosted demand for ton-mileage and constrained the effective supply of vessels. Since the outbreak of conflict in the Arabian Gulf region in March 2026, these factors have further impacted both supply and demand dynamics in the market.
In the first quarter of 2026, the company's core business recorded average daily earnings of $12,100 for Handysize dry bulk vessels and $14,000 for Supramax vessels, on a time charter equivalent basis. These figures represent year-on-year increases of 11% and 14%, respectively. The average daily earnings exceeded the adjusted BHSI and BSI spot market indices by $1,030 and $2,050 for the period.
For the second quarter of 2026, 70% of the available days for core Handysize vessels and 90% for core Supramax vessels have been contracted at average daily rates of $14,000 and $17,080, respectively. Regarding the remaining days for 2026, 22% of core Handysize days and 35% of core Supramax days have been contracted for the second quarter at average daily rates of $10,400 and $13,800, respectively. A significant portion of the contracted Handysize days are for backhaul cargoes.
Furthermore, the company's operating activities continue to expand. During the first quarter, across 6,240 operating days, it recorded an average daily profit of $340 (net). These operating activities, which involve matching customer spot cargoes with short-term chartered vessels, complement the core business. They generate profits and contribute positively to the company's performance.
Freight rates in the first quarter of 2026 were robust and stronger than the same period last year. The war that broke out in late February intensified market disruptions, leading to increased volatility in freight rates starting from March 2026.
In the first quarter of 2026, the average daily spot market rates for Handysize (adjusted BHSI 38,000 dwt) and Supramax (BSI 58,000 dwt) dry bulk vessels were $11,100 (net) and $11,900 (net), respectively. These figures represent increases of 39% and 51% compared to the first quarter of 2025.
As of April 15, 2026, freight futures contracts reported by the Baltic Exchange for the second to fourth quarters of 2026 remain high. The freight futures rates for Handysize and Supramax dry bulk vessels are approximately $14,100 (net) and $16,200 (net) per day, respectively.
Comments