Pacific Basin reports stronger dry bulk earnings in third quarter
Pacific Basin Shipping Limited reported higher average daily time-charter equivalent (TCE) earnings during the third quarter of 2026, supported by stronger dry bulk freight rates and resilient tonne-mile demand.
The company’s Handysize fleet generated average daily TCE earnings of US$16,020, representing a 37% increase compared with the same period last year.
Its Supramax fleet achieved average daily TCE earnings of US$17,990, up 34% year on year.
The improvement came as geopolitical disruptions, shifting commodity trade flows and inefficiencies across global shipping networks continued to influence vessel demand.
Handysize and Supramax earnings strengthen
Pacific Basin’s Handysize earnings exceeded the corresponding Baltic Exchange spot market index by US$1,350 per day, or 9%, during the quarter.
Supramax earnings were US$300 per day, or 2%, below the relevant market index. The company attributed the difference primarily to regional freight rate variations and its decision to position vessels towards the Atlantic market ahead of the fourth quarter.
Across the first nine months of 2026, both vessel segments outperformed their respective market benchmarks.
The broader Handysize spot market averaged US$14,670 per day during the third quarter, an increase of 27% year on year. Supramax spot rates averaged US$18,290 per day, up 28%.
Contract coverage extends into 2027
Pacific Basin has secured cargo coverage for a significant proportion of its committed vessel days in the fourth quarter.
As of 12 October, the company had covered 65% of its committed Handysize core vessel days at approximately US$16,480 per day.
For Supramax vessels, coverage reached 76% at approximately US$18,960 per day.
Looking further ahead, the company had secured coverage for 7% of its committed Handysize vessel days in 2027 at approximately US$13,180 per day and 19% of its Supramax vessel days at approximately US$15,590 per day.
These forward TCE figures remain indicative because the associated voyages are still in progress.
Geopolitical disruptions reshape dry bulk trade
Pacific Basin identified geopolitical tensions and changes in commodity movements as important influences on dry bulk shipping during the quarter.
Disruptions to Black Sea grain exports and restrictions affecting fertiliser shipments from the Arabian Gulf reduced cargo availability in certain markets.
At the same time, longer voyages and changing vessel deployment patterns supported tonne-mile demand.
The company reported that global grain trade volumes increased by approximately 11% during the first nine months of 2026, while iron ore trade grew by around 3%.
Bauxite trade expanded by approximately 11%, supported by increased exports from Guinea.
Fleet renewal continues
Pacific Basin operated 258 vessels as of 30 September 2026, including 106 owned vessels, 13 long-term chartered vessels and 139 short-term chartered vessels.
During the third quarter, the company exercised a purchase option on a Japanese-built Handysize vessel, took delivery of another long-term chartered Handysize vessel and completed the sale of two owned Supramax vessels.
It also declared a purchase option on an additional Handysize vessel, with delivery expected during the fourth quarter.
The company expects dry bulk market conditions to remain supported by longer-haul commodity trades and continuing shipping network inefficiencies into 2027.
However, geopolitical uncertainty, fleet growth and evolving environmental regulations remain important factors affecting the market outlook.
