Pacific Basin (02343) reported a solid third-quarter 2026 performance, driven by stronger dry-bulk freight rates and resilient tonne-mile demand. Average daily time-charter equivalent (TCE) earnings in the core fleet rose to US$16,020 for Handysize vessels and US$17,990 for Supramax vessels, marking year-on-year gains of 37% and 34%, respectively.
The Handysize fleet outperformed the tonnage-adjusted Baltic Handysize Index by US$1,350 per day (+9%), while Supramax earnings lagged the Baltic Supramax Index by US$300 per day (-2%), reflecting deliberate Atlantic–Pacific positioning ahead of the traditionally stronger fourth quarter. For the first nine months of 2026, Handysize and Supramax outperformance versus their benchmarks stood at US$1,730 (+13%) and US$1,440 (+9%) per day.
Operating Activity—matching customer spot cargoes with short-term chartered tonnage—generated a margin of US$2,190 per day on roughly 6,610 operating days during the quarter, providing an additional earnings lever alongside the owned and long-term chartered fleet.
Forward coverage remains substantial. As of 12 October 2026, 65% of committed Handysize days and 76% of Supramax days for Q4 2026 were fixed at US$16,480 and US$18,960 per day, respectively. For 2027, 7% of Handysize days and 19% of Supramax days are covered at US$13,180 and US$15,590 per day.
The fleet totalled 258 vessels at 30 September 2026, comprising 106 owned, 13 long-term chartered, and 139 short-term chartered ships. During Q3 2026, Pacific Basin exercised one purchase option on a Japanese-built Handysize, took delivery of another long-term chartered Handysize, and completed the sale of two owned Supramax vessels as part of its renewal programme. Eleven additional purchase options on currently chartered vessels remain exercisable between 2027 and 2031.
Market fundamentals were supportive: Handysize and Supramax spot rates averaged US$14,670 (+27% YoY) and US$18,290 (+28% YoY), respectively, despite a brief summer soft patch. Geopolitical disruption—most notably in Black Sea grain and Arabian Gulf fertiliser trades—tightened effective vessel supply, while long-haul Atlantic-to-Asia flows, increased Chinese demand, and continued logistical inefficiencies sustained tonne-mile demand.
Clarksons Research estimates net dry-bulk fleet growth at 4% for full-year 2026, with Handysize and Supramax segments expanding by about 3.1%. Vessels older than 20 years represent roughly 14% of the global fleet, a factor expected to constrain effective supply as decarbonisation regulations tighten.
Management highlighted a strong balance sheet, disciplined capital allocation, and a flexible fleet strategy as key advantages heading into Q4 2026 and 2027, periods expected to benefit from seasonally firmer demand and ongoing market inefficiencies.
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