Pacific Basin Shipping earnings improve

Business | 14 Oct 2020 6:47 pm

Pacific Basin Shipping (2343) said third-quarter vessel earnings improved, driven by a recovery in Chinese dry bulk imports and strong global grain volumes.

The company recorded an average Handysize vessel daily time-charter equivalent (TCE) earnings of US$8,000 (HK$62,400) in the quarter ended September, rising by 11 percent compared with the first half but still a 15.6 percent drop from a year ago.

The TCE for Supramax vessels was US$11,200 net per day in the third quarter, improving by 12 percent from that for the first six months this year, but still 3.3 percent lower compared with that for the year-before period.

Market spot rates for Handysize and Supramax ships averaged US$7,670 and US$9,430 net per day, respectively, in the third quarter of 2020, representing a strong 56 percent and 65 percent recovery compared to the first half of 2020, said the company.

The company said it will again consider expanding its owned fleet with larger, high-quality second-hand acquisitions. The company owned 117 ships and, including chartered ships, it had an average of 238 Handysize and Supramax ships overall on the water in the third quarter.

In early October, the company committed to selling one of its oldest and smallest Handysize ships with delivery in the next four weeks, it said.

Shares of the marine cargo operator slid by 3.2 percent to HK$1.21 today.

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